The high stakes family ‘board meeting’ about wealth you need to have this Christmas

Baby Boomers are being urged to hold a high stakes board meeting with their families this Christmas to discuss a $6 trillion issue. See the checklist for the conversation.

With more than $6 trillion expected to be handed over by Baby Boomers to their children and grandchildren in the next few decades, large family gatherings like Christmas Day are the perfect venue for that wealth conversation, experts say.

Vincents private wealth director Paul Green said Christmas offers the opportunity to start the conversation about family wealth - whether it’s to be used now or as inheritance in the future - in a more relaxed environment.

“The holidays aren’t just about gifts, they’re about legacy, which makes it the perfect time to have a high-stakes conversation about family wealth in a relaxed, low‑stakes setting,” he said.

“Pivot from the idea of handouts to hand ups – handouts solve today’s problem, but a hand up strategy can solve tomorrow’s and ensures wealth strengthens the whole family, not just one generation.

“Start small and build in detail over time – your family’s first conversation about wealth should be conceptual like an opening chapter, not the whole book.”

Use Christmas as the opportunity to have conversations with family about generational wealth, say experts.

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Mr Green said it was important for families to work together and plan regular family “board” meetings.

“It’s not about what happens after … or a lack of faith in the next generation to take care of themselves.” he said.

“Working collectively as a family provides peace of mind and builds financial knowledge and understanding, without wasting decades of wealth potential.”

A checklist for approaching the family wealth conversation

Choose your audience

Who needs to be part of this initial conversation? Just your adult children? Do you want to include their spouses/partners?

Pick your moment

Depending on your family, Christmas Day itself may not be the day to dive in but rather flag your wish to have a family conversation over the holiday break.

It’s a connected world

Video conferencing is always an alternative for far flung families.

More than $6 trillion in wealth expected to be handed over by Baby Boomers to the children and grandchildren in the next few decades.

Mum and Dad are fine

It’s not about anyone being ill, or about retirement or estate planning – it’s about using the wealth now to benefit everyone long term, rather than waiting for an inheritance down the track.

Set the intention

The broader intention with family wealth planning is to structure the family’s wealth to benefit all generations – now and into the future. However, this first conversation is often an opportunity for parents to raise the fact that there is a certain amount of wealth, it is excess to needs and will be passed on, and with that in mind they want to assist future generations and work collectively as a family to do that.

It’s not just about the money

Family wealth planning is about a shared vision and strategy that grows and protects the family’s wealth across generations. It’s not about the sum of money but why certain financial choices matter.

Judgement free zone

Even within the same family, each person’s experience and situation will vary. This conversation needs to be a safe space for everyone to talk about their financial goals, concerns or challenges. There are no wrong questions or anything ‘off-topic’.

Resist the urge to problem solve

It’s important to listen to any concerns raised by your children and the questions asked, without jumping straight into parent mode. Being open to what they are saying and giving them that space helps everyone to better understand each other in the long term.

Patience and focus

Despite your best efforts, some family members may take a while to open up or engage with the process. Keep the conversation open and inclusive for all and focused on the goal of wanting to benefit the entire family.

What happens next depends on your family.

You may have a few more conversations as a group or bring an independent expert into the mix to align the family goals, manage potential conflicts and offer strategies and options for consideration. Either way, this is a preliminary conversation and there needs to be further conversations with increased formality down the track.