It often happens in a relationship that one person leads the decisions on investments, retirement income and planning the family estate, while their partner is happy to follow their lead. This partner, however, would be completely unprepared if they suddenly needed to take control of the family finances.
In the event of a crisis where the financial decision maker dies, it becomes a significant and often costly issue if the other partner is unaware about their own financial situation. It can multiply the grief and stress in an already trying time.
The following are some questions to be considered:
- Do you have a succession plan in place if a crisis occurs?
- Is your partner aware of where all the family assets are held?
- Does your partner know how all the investments work?
- Does your partner know the financial adviser?
Now is the time to begin the conversation with your loved one. Designate a time with your partner and adviser to review your written succession plan and all the family’s financial and investment reports, explaining in detail what each asset and liability is. Having this conversation between yourself, your adviser and your partner can also help relieve the burden from your loved ones. If a crisis does arrive, your partner will know who to discuss their financial concerns with, and feel more capable doing so.
More information on Estate Planning.