Managing family finances is rarely just about the numbers on a spreadsheet. For many of the families we work with at Temple Wealth, it is far more emotional than that. It is about the tension between wanting to give your children the best possible start and ensuring you don’t run out of money in your own later years.
We often talk to clients who find themselves in the “sandwich generation.” You might be at the peak of your career, yet you are squeezed between two very different sets of priorities. On one side, you have adult children struggling to get a foot on the property ladder or facing rising costs of living. On the other, you might have elderly parents whose health needs are becoming a primary concern.
It is a delicate balancing act, and it is one that requires a bit more than just a standard savings account.
The rise of the “living legacy”
The traditional view of inheritance was something that happened “at the end.” However, we are seeing a significant shift towards “living legacies.” More parents and grandparents are choosing to gift money now, when it can make the most difference, rather than leaving it all in a Will.
Whether it is helping with a first home deposit or funding a grandchild’s education, seeing the impact of your hard work during your lifetime can be incredibly rewarding. But it also brings up some practical questions. How much can you give away without affecting your own lifestyle? What are the implications for Inheritance Tax?
The danger of gifting too much, too soon, is that you might leave yourself short if your own circumstances change, particularly if long-term care becomes necessary later on.
Looking at the big picture
This is where holistic financial planning comes into its own. Rather than looking at your pension, your ISAs, and your property in isolation, we look at how they all work together to support your life goals.
When we sit down with a family, we start by asking what “wealth” actually means to them. Usually, the answer isn’t a specific number. It is the freedom to travel, the security of knowing the mortgage is covered, or the peace of mind that comes from knowing the next generation is looked after.
Once we understand those goals, we can start to build a strategy that protects your “tomorrow” while allowing you to be generous “today.” This might involve making the most of your annual gift allowances or looking at trust structures that allow you to retain some control over how and when money is distributed.
Making the conversation easier
Money can be a difficult topic to bring up at the dinner table. Many families avoid it because they don’t want to cause friction or appear to be prying. However, involving your family in the planning process can actually be a great way to provide clarity and reduce future stress.
We find that when children understand the plan, they feel more secure. They aren’t guessing about what might be left to them, and they are better prepared to manage their own finances as a result.
If you are feeling the pressure of balancing family support with your own retirement plans, it might be time for a fresh look at your strategy. Our goal is to make sure that your wealth serves your life, not the other way around.
You can contact one of our independent advisers for personalised advice and support in making confident, informed decisions by using our Facebook or Contact Us pages, or speaking to a colleague in our office on 01329 282882.
Please note: The content of this blog is for your general information purposes only and does not constitute as Inheritance/ investment advice.
The Financial Conduct Authority does not regulate Trust Planning.
The Financial Conduct Authority does not regulate Estate Planning or Will Writing
