Only 21% of parents have told their children
how much inheritance they will receive
According to new research released by Ameriprise Financial
(NYSE: AMP), more than half (52%) of Americans say they feel
extremely or very confident about their family’s financial future.
Their secret: regular family conversations about money. Families
with the most financial confidence say they cover a variety of
topics including long-term financial goals, retirement and estate
planning. The Family Wealth Checkup study surveyed 2,700 Americans
between the ages of 25-70, revealing how families navigate
financial communication and the challenges they encounter along the
way.
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Family Dynamics: Financial DiscussionsThe study found
family members tend to discuss different topics with different
relatives. Adult children are most likely to initiate conversations
with their parents about managing current finances (74%), the cost
of healthcare (73%) and long-term financial goals (70%). When
parents take the lead in financial discussions with their adult
children, they also bring up managing debt (73%). In general,
survey respondents report they are less likely to talk to their
family members about estate planning and inheritance but it’s still
a popular topic (67% talked to their parents, 69% talked to their
adult children about this topic).
“Estate planning and inheritance are inherently emotional and
often uncomfortable topics of conversation, but addressing them
head on as a family can prevent a lot of uncertainty and tension
down the road,” says Marcy Keckler, vice president of Financial
Advice Strategy at Ameriprise Financial. “Our message to anyone who
hasn’t done so already is to seize the opportunity now to foster an
honest and healthy dialogue with your loved ones.”
The Family Legacy: Planning TogetherMost survey
participants (83%) want to leave money or assets to a loved one;
however, only 64% feel they are on track or prepared to leave an
inheritance and even less (50%) have a formal plan in place. Only
21 percent of parents who are planning to leave something to their
children have told them how much inheritance they will receive. As
a result, expectations don’t always match reality. The majority of
respondents (53%) expected to receive more than $100,000. In fact,
the majority (52%) of those who have received an inheritance got
less than $100,000; an amount that only matched the expectations of
28 percent of those surveyed.
Money transferred within families can often cause conflict.
Nearly a quarter (24%) of respondents think an inheritance will
cause tension or disagreements with family members—a sentiment that
rings true for a quarter of individuals who have received money
following the loss of a loved one.
Don’t Wait, Communicate!Both parents and their adult
children say the top trigger for conversations around estate
planning is aging. But, age can also create a barrier between
family members when it comes to who should initiate the
conversation. The number one reason why adult children haven’t
talked with their parents about the topic is that they “don’t
believe it’s their place to raise the issue.” Parents, meanwhile,
don’t bring up the subject because “they haven’t thought about it”
(25%), or “don’t feel it’s appropriate” (19%).
Though estate planning can be a tough topic to initiate,
families who have talked about it say the discussion went much
smoother than anticipated. The overwhelming majority said the
conversations were straightforward, easy and relaxed as opposed to
awkward or difficult.
“The hardest part is starting the conversation, which is where a
financial advisor can make a difference,” says Keckler. “Working
with a financial professional can help family members get on the
same page and could mean the difference between leaving behind a
loving legacy or leaving behind a headache and hurt feelings.
Family Wealth
Checkup Tips
1. Start discussions early and don’t shy away from serious subjects
-- 9 in 10 adult children who have
discussed estate planning say a life altering incident triggered
the talk with their parents. Don’t wait until a family tragedy to
bring up finances.
2. Have an estate plan in place
-- It’s important to have written
instructions of your wishes, such as a will or trust, and be sure
your beneficiary designations are up to date across all
accounts.
3. Tell loved ones where to find important documents
-- Family members should know where
important documents are located, including how to access online
accounts.
4. Work with a financial professional
-- A financial advisor can help families
understand their full financial picture with a customized approach
to fit their unique needs.
For more information about the study, please visit our research
page at Ameriprise.com/familywealth
About the survey
The Family Wealth Checkup study was created by Ameriprise
Financial, Inc. and conducted online by Artemis Strategy Group
November 23 – December 15, 2016 among 2,700 U.S. adults between the
ages of 25-70 with at least $25,000 in investable assets. For
further information and details about the study, including
verification of data that may not be published as part of this
report, please contact Ameriprise Financial or go to
Ameriprise.com/familywealth.
About Artemis Strategy Group
Artemis Strategy Group (www.Artemissg.com) is a communications strategy
research firm specializing in brand positioning, thought leadership
and policy issues.
About Ameriprise Financial
At Ameriprise Financial, we have been helping people feel
confident about their financial future for more than 120 years.
With extensive asset management, advisory and insurance
capabilities and a nationwide network of approximately 10,000
financial advisors, we have the strength and expertise to serve the
full range of individual and institutional investors' financial
needs. For more information, or to find an Ameriprise financial
advisor, visit ameriprise.com.
For further information and detail about the study including
verification of data that may not be published as part of this
report, please contact Ameriprise Financial.
Ameriprise Financial Services, Inc. Member FINRA and SIPC.
© 2017 Ameriprise Financial, Inc. All rights reserved.
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Ameriprise Financial, Inc.Jennifer Johnson,
612-671-7188Media RelationsJennifer.3.johnson@ampf.comConnect with
us on Twitter: @Ameriprise
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