At Stonehage Fleming most of the families the company works with have their own way of helping their next generations.
Lucy Birtwistle, director, family office at the company says some choose to give shares at 18, others choose allowances or trust distributions, and others provide the first home, or assistance with its purchase. It entirely depends on each family’s level of wealth and their relationship with money.
She adds: “In general, many next generation recipients are appreciative of financial assistance – but the area that can cause conflict is how it’s communicated and the expectations. If you’ve been brought up expecting that you’ll have a house bought for you, then receiving assistance for the deposit would come as a disappointment.
“Likewise, some clients have houses bought in trust for the beneficiaries, but the beneficiaries are surprised by having to pay rent to the trust. These are all situations which need not become an issue if the purpose of the wealth is communicated clearly; and how the family seeks to put that into action.”
Ms Birtwistle says it is important to ensure the parents are aligned in their thinking and then advisers can assist them in delivering and communicating their decisions to the next generation.
Ima Jackson-Obot is deputy features editor of Financial Adviser and FTAdviser
