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It can be uncomfortable for parents to discuss inheritance details with their children — as explained in this report in the New York Times, which includes perspective from Cardan Capital Partners co-founder Matt Papazian. 

As the report notes:

“Two-thirds of the 57 people polled by Wilmington Trust, a bank founded by the du Pont family in the early 20th century and now owned by M&T Bank, said they were ‘apprehensive about sharing inheritance details.’ All participants had a net worth of more than $20 million, and only a tenth of them said they had given complete information about inheritance to their heirs — apparently for fear of dampening their work ethic.

“Their rationale did not seem unreasonable, at least on the face of it. But they were also concerned with heirs being too young to grasp what would come to them — and with their children deciding to pause their lives as they waited for wealth that might not appear.”

Also from the report:

“For families with far less wealth, not talking about money while still funding their children’s lifestyles can have a more detrimental effect. The parents could run out of money they will need in retirement.

“Matt Papazian, founding partner and chief investment officer at Cardan Capital Partners in Denver, said he asks clients, ‘Do you want to downsize your own retirement to upsize your child’s current lifestyle?’

“He counsels parents with good retirement savings, but not abundant wealth, to focus only on their children’s essential needs. ‘It’s a hard conversation for the adviser to have with the parent,’ he said. ‘It’s also a hard conversation for the client to have with their children. But it’s got to happen.’”

For a full look at this interesting New York Times report, click here.


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