Helping ageing parents manage wealth: What families need to know

Many Baby Boomers are finding it harder to keep their finances as organised as they used to. This really matters because disorganisation can put family wealth and future plans at risk.

The best time to get organised is before you need to. Planning ahead prepares your family and protects your wealth.

1. Spot the early signs and start the conversation

It’s common for ageing parents to feel overwhelmed by paperwork, miss bills, or lose track of investments. There's also the growing need to understand and work with the technology imposed upon them by their financial institutions and the reduction in human-to-human assistance they provide. For example, we're seeing instances where Dad is unsure about which accounts he holds, Mum struggles to find important documents and confusion when accessing accounts requiring multi-factor authentication. Recognising these signs early and having a respectful conversation helps families avoid costly mistakes and stress.

Action:

Don’t wait for a crisis. Check in with your parents about their financial organisation and offer support before problems escalate.

2. Simplify and centralise your family’s financial records

Complexity grows as families and businesses build wealth. Multiple accounts, properties, and investments can quickly become unmanageable. A practical step is to create a secure, central record of all assets, liabilities, and key contacts. For example, families we work with have a digital folder for all their important documents to be saved to, making it easy to access and update when the family needs to. This approach organises everything for our clients, ensures nothing is missed, and makes life easier for everyone.

Action:

Work together to centralise and update your family’s financial records. Use a secure digital platform if possible.

3. Prepare the next generation for wealth transfer

Most family wealth will eventually pass from Mum & Dad to the next generation, but many of their kids are time-poor or simply not ready for the responsibility of inheritance. One practical way to bridge this gap is for the parents and their kids to both be involved in meetings with their advisers, giving them a clear understanding of the family’s financial structure and future plans. By coming together like this everyone knows where things are at, gaps can be identified in both the parents and the kids' situations and better decisions can be made in future. This will go a long way in avoiding unnecessary disputes down the track.

Action:

Mum & Dad, invite the next generation into planning conversations now. Encourage them to ask questions, build their knowledge and get familiar with the family’s advisers. Family wealth grows from generation to generation when everybody works together.

Take action now, and plan ahead

Getting organised today protects your family’s lifestyle and future wealth. Start by having respectful conversations, reviewing and organising your financial documents, setting clear goals, and making sure your plans are up to date. If you feel overwhelmed, consider bringing your advisers together to simplify your financial life and put the right structures in place. Taking these steps now can avoid family disputes and make a big difference for your generational wealth.

More soon.