In today’s fast-paced, increasingly complex financial world, talking about money across generations can feel awkward, emotional, or simply unnecessary. But in reality, starting those conversations early can be one of the most important financial planning decisions a family makes.
At Willow Tree Financial Services, we understand that true financial planning isn’t just about growing wealth, it’s about protecting it, sharing it wisely, and using it to shape the lives of the people you love. That’s why intergenerational wealth planning matters.
What Is Intergenerational Wealth?
Intergenerational wealth refers to assets that are passed from one generation to the next. This could include property, pensions, savings, investments, businesses, or even life insurance payouts. It might be passed on after death through an estate, or while the giver is still alive through financial gifts.
But more than just money, intergenerational wealth is about transferring opportunity, security, and legacy. It’s a way of supporting the next generation to live well, make empowered decisions, and reach long-term goals with confidence.
The Emotional Side of Money Conversations
For many families, money is still a taboo topic. Perhaps growing up, it wasn’t spoken about often at home, or you’re unsure how your children (or parents) will react to the idea of financial planning.
Yet ignoring the conversation can lead to confusion, missed opportunities, or even family conflict. It’s not just about inheritance or tax, it’s about making sure your wishes are understood, your loved ones are supported, and your values are passed on alongside your wealth.
These conversations are rarely easy, but they can be incredibly rewarding. They give families a chance to:
- Understand each other's goals and needs
- Reduce the burden of uncertainty
- Align on how wealth can be used for good
- Plan for challenges such as illness, care needs, or housing
Why Intergenerational Wealth Matters
Passing on wealth isn’t just about leaving money behind. It’s about helping the people you care about while you still can— whether that’s through supporting a child with a house deposit, contributing to grandchildren’s education, or easing financial pressure in tough times.
Some of the potential benefits of intergenerational wealth planning include:
1. Financial Security
Families who plan ahead can help each other feel more secure during unexpected life events, like job loss, illness, or the rising cost of living.
2. Opportunity Creation
Passing on wealth can give younger generations the freedom to invest in higher education, buy their first home, or even start a business.
3. Long-Term Vision
Wealth planning helps families set shared goals, whether that’s funding retirement, travelling more, or giving to charity.
4. Reduced Stress and Disputes
With clear communication and a plan in place, there’s less room for misunderstandings or emotional strain later on.
5. Legacy and Values
Intergenerational wealth isn’t just about assets. It’s a chance to pass on values, traditions, and a sense of responsibility.
Modern Family, Complex Dynamics
Today’s families are more diverse than ever. With rising divorce rates, blended families, and stepchildren or second marriages becoming more common, financial planning is no longer straightforward.
Who do you want to leave your wealth to? How should it be split fairly? Are there vulnerable people in the family who may need extra support? How do you navigate these decisions while keeping relationships intact?
These are big questions, and answering them is a deeply personal process. But one thing is clear: the sooner the conversations happen, the more thoughtful and inclusive your planning can be.
It’s also important to consider the legal implications. For example, without a valid Will, your estate could be distributed in a way that doesn’t reflect your wishes. Having up-to-date Wills, powers of attorney, and protection in place is essential for safeguarding both your wealth and your family’s wellbeing.
When Should You Start Talking?
Ideally, now. Many people wait until retirement or later life to start thinking about passing on wealth. But starting earlier creates more flexibility and choice.
If you’re a parent or grandparent, you might consider:
- Could I help my child buy their first home?
- Is there a way to support a grandchild’s education?
- Are there financial gifts I want to make now, rather than later?
- What will happen to my assets if I don’t make a clear plan?
On the flip side, if you believe you may receive an inheritance, it can be helpful to understand what that might mean for your own financial goals. Would you want to redirect some of that support to your children or to a cause that matters to you? Is it time to talk to your parents or grandparents about their wishes?
Starting the Conversation: A Practical Guide
It doesn’t have to be a big formal event. Sometimes it’s as simple as a conversation over coffee or during a walk. Here are a few ways to ease into the topic:
1. Choose the Right Moment
Avoid high-stress situations. Instead, bring it up during a calm, private moment when everyone is relaxed and open.
2. Be Honest About Your Intentions
Let your family know that your goal is to understand, plan, and avoid confusion or conflict later on.
3. Ask Questions First
Rather than leading with advice or decisions, start by listening. Ask what matters most to them, and what their hopes or concerns are.
4. Bring in a Professional
Sometimes a neutral third party, like a financial adviser, can help take the emotion out of the conversation and provide guidance that everyone can trust.
5. Keep It Ongoing
This doesn’t need to be one conversation and done. Make it a regular check-in as life changes.
Tax, Gifts, and Inheritance
Of course, a big part of intergenerational wealth planning is understanding the tax landscape. While tax rules are always subject to change, a good financial adviser can help you:
- Make use of annual gift allowances
- Understand potential inheritance tax implications
- Structure your estate to reflect your values and intentions
- Explore options like trusts or life insurance to provide for loved ones
And while no one likes to dwell on what happens after we’re gone, planning now means you have a say in what happens later.
You Don’t Have to Do This Alone
At Willow Tree Financial Services, we’re here to make this feel easier. We understand that money is emotional. That every family is different. And that financial planning should support your life, not add to your stress.
Whether you’re thinking about:
- Helping children or grandchildren financially
- Talking to your own parents about their estate
- Clarifying your Will and legacy
- Reducing potential tax bills
...we can help you find the calm, and the clarity.
We work with families across East Sussex and beyond, supporting conversations that often feel difficult but are always important. Our approach is empathetic, non-judgemental, and rooted in your values.
Money can be a source of worry, or it can be a tool for connection, security, and opportunity. Intergenerational wealth planning is about using what you have to create the kind of future you want, for yourself, and for the people you care about most.
Start the conversation now. Ask the questions. Make the plans. Share the knowledge.
And remember, you don’t have to do this alone. Book a friendly, no-pressure consultation with Willow Tree Financial Services today.
Visit www.willowtree-fs.co.uk or call 01323 436680.
Estate planning and inheritance tax planning are not regulated by the Financial Conduct Authority.
