Introducing younger family members to estate planning

Passing on wealth can feel daunting, but it doesn’t have to be. The goal isn’t only to pass assets down to a generation (or indeed generations), but to prepare the children to understand, protect, and steward the family legacy with confidence and purpose. From simple early conversations to hands-on involvement in family investment decisions, teaching younger family members about estate planning is one of the most meaningful gifts you can make.

Estate planning doesn’t need to arrive all at once at a child’s 18th birthday in a flurry of documents and paperwork. It can start simply with explaining how a particular bank account works (an ISA being a prime example) or indeed helping them understand what a will does. For a young adult, it could be an introduction to trusts or inheritance in a way that feels relevant to their future, rather than a remote, hypothetical concept. Step by step, the subject becomes less daunting and more meaningful.

Wealth is more than figures on a balance sheet. What gives it purpose are the values that guide its future and ongoing use. Families who share their plans, whether supporting charitable causes, encouraging entrepreneurship, or investing in community projects, help younger generations see money as a tool for impact. This not only fosters responsibility but also shows them the impact wealth can have in the world when used in the right ways. They can be shown that their role is to be custodians, not just beneficiaries.

Practical involvement makes lessons stick. Sitting in on a meeting with advisers, helping to choose a charitable initiative, or making small financial decisions builds both confidence and understanding. These experiences transform wealth management from an abstract concept into something real and relevant. 

Responsibility should be introduced in stages. Expecting someone to suddenly manage complex decisions risks overwhelm.  A gradual journey, involving reviewing documents, attending family meetings, or assuming increasing roles, ensures they feel prepared when the time comes.

As children become more experienced in such concepts, client families often consider setting up charities with their children appointed as some of the trustees. This allows them to gain experience attending annual investment manager reviews, considering the respective strengths of grant requests, and being empowered to have a voice in formal trustee settings.

Stories and experiences often teach better than technical explanations. Real-life examples, whether of careful planning, conflict avoidance, or a lack of planning leading to disputes, provide context and meaning that younger family members can remember.

At its heart, estate planning isn’t just about wealth transfer; it’s about protecting family bonds. A clear plan reduces disputes, preserves unity, and ensures wealth carries forward with both purpose and care.  Conversely, cases going before the Courts in expensive and endless litigation often have poor communication within a family and management of expectations at their heart.

Also, be aware that you are not alone in this; your current professional advisors may be well placed to assist with this process. A child seeking to learn could sit in on a meeting with them to grasp concepts better, and this might well address the common lament amongst parents, “My child never listens to me”.  The fact that your advisor is not a family member may well give them that legitimacy and standing in that child’s eyes that leads them to listen more intently and ask questions they might not ask of you.

The Greenwoods Private Wealth Team’s top 5 tips for preparing the next generation for wealth

1. Start Early:  Keep conversations age-appropriate and straightforward. A teenager only needs to understand the basics, while young adults can take on more detail.

2. Link Wealth to Values: Show that wealth is more than money. Connect it to family purpose, philanthropy, and long-term impact.

3. Involve Them Gradually: Invite younger members to family meetings or let them help choose a charity. Small steps build confidence.

4. Teach Through Stories: Real-life examples, both successes and challenges, make estate planning more relatable and memorable.

5. Build Responsibility in Phases: Don’t hand over everything at once. Step-by-step involvement helps younger family members have a better understanding of estate planning.

In short, the end goal is to engender an understanding that it would be a true gift for that child to, in later life, pass on wealth (and the responsibility that passes with it) to their own children.

At Greenwoods, the Private Wealth team help families protect not only their wealth but also the values and relationships that truly matter in their legacy.