Diane Harris reports that inheritance conflicts often stem from emotional ties rather than just the monetary value of assets.
Research indicates that an estimated $124 trillion in assets will transfer from older generations to younger heirs over the next few decades. However, a survey of more than 2,575 adults suggests that these wealth transfers may create significant family conflict.
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One-third of adult children believe inheritance is likely to cause friction among siblings, while nearly half of those surveyed have adjusted their behaviors to stay in their parents' good graces for financial reasons. Diane Harris, Kiplinger's deputy editor, noted that inheritance issues are often tied to emotions such as feelings of favoritism and past tensions rather than just the dollar amount. The study found a discrepancy in how parents and children view asset division; while 71% of parents intend to divide assets equally, only about half of adult children prefer that outcome, with many preferring a division based on need or merit. Additionally, there is a conflict regarding timing. Forty-five percent of adult children prefer receiving financial help now, while only 14% of parents would prefer to give now rather than later. Parents often hesitate to provide immediate help due to concerns about inflation, long-term care costs, and ensuring they have enough money for the rest of their lives.
Sources
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How to Talk to Your Adult Kids About Their Inheritance
Kiplinger
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He helps parents prepare their kids for inheritance. He used the same 3-step process with his.
Business Insider
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Navigating family rivalries in inheritance planning
Professional Wealth Management