There’s never usually a perfect time to talk about finances, especially with older family members. Yet, it’s vital to address these topics to prevent stress and ensure everyone’s future is secure. From unexpected expenses like illness, to not having enough savings, financial challenges can be significant for older relatives. Here’s how open conversations and early planning can make a world of difference.
Why financial conversations matter
Research highlights a reluctance to talk about financial matters, even though it’s crucial. For instance, 49% of parents have not discussing any instructions or details of a Will with their adult children, often assuming their assets are too minimal to bother. Further, only a third of parents (34%) had told their children where to find their Will.
Avoiding financial discussions can lead to anxiety and poor preparation. Aegon’s ‘Second 50’ research in 2024 shows that 55% of adults support or expect to support their parents financially in their retirement. In addition, less than half (46%) of 45 to 54-year-olds are upbeat about their parents’ financial prospects. This drops to only 2% of 18 to 24-year-olds.
Starting conversations early benefits everyone, ensuring that care plans, estate distribution, and financial wellbeing are handled smoothly.
Important questions to ask
If you’re unsure how to begin, professional help can make a difference. At Origen our experienced financial advisers guide families through these discussions, ensuing everyone is on the same page and offering practical advice where needed. Here are some important questions to ask older relatives and some actions to consider:
- Have you recently reviewed your living costs? Help elderly relatives manage day-to-day expenses effectively. Start by creating a budget, including essentials, nice to haves, savings and any one off costs. Review utilities, insurance, and subscriptions to ensure they’re necessary and competitively priced. Younger family members can help with online deals, where older generations may feel slightly less confident. It’s also important to ask whether all available tax allowances are being claimed, such as the marriage allowance. Your financial adviser will be able to identify further opportunities to use all available tax allowances and maximize savings.
- Have you worked out the impact of Inheritance Tax (IHT) on your estate? Rising house prices and continued frozen tax thresholds have led to the government’s IHT receipts reaching reached an all-time high in 2024. In addition the recent Budget announcement that pensions will fall within the IHT net from April 2027, will lead to more and more families facing increased IHT bills. Strategies like trusts (e.g. gift trusts or loan trusts) and gifting assets away can really help to reduce IHT liabilities. Again your financial adviser can recommend the best approach for your family’s situation.
- Have you made or updated your Will? A Will ensures assets are distributed according to wishes and prevents family disputes. Updating it regularly is just as important – especially after major life events like births, marriages, or deaths. For example, marriage invalidates a previous Will, requiring a new one. It’s definitely worth sitting down as a family to discuss and explain the contents of the Will – it will help to provide peace of mind, avoid disputes and prevent any unexpected surprises.
- Is it worth setting up a Lasting Power of Attorney (LPA)? An LPA allows a trusted person to make financial or healthcare decisions if someone becomes unable to do so. Setting up LPAs alongside a Will saves time and money while preventing future distress.
- Let’s talk about planning for care costs. Long-term care costs can significantly erode wealth, but there are ways to plan for these. For example, an immediate needs annuity can provide tax-free income directly to care providers. At Origen, our specialist Long Term Care advisers can really add value here, helping you to navigate these options, ensuring all of your family is financially prepared while protecting wealth.
- Have you organised all of your important documents? Good record-keeping is essential. Make sure that financial records, as well as Wills, trust documents, and pension letters of wishes are all kept safe. But also let family members know where to find them! Tracking gifts and expenditures will also help to prove any IHT exemptions needed later. Maintaining order avoids confusion during critical times.
Families make better decisions together
When families collaborate on financial planning, it reduces stress and promotes peace of mind. Early discussions let you focus on enjoying time together, knowing plans are in place for the future.
At Origen, we work with all generations to tailor financial advice to your unique needs. Whether it’s estate planning, tax efficiency, or managing care costs, we’re here to help your family achieve financial security.
Ready to start the conversation? Contact your Origen adviser, or alternatively please call our Client Services team today on 0344 209 3925*, or at clientservices@origenfs.co.uk
*Lines are open Monday to Friday, 8.30am to 5.30pm. Calls are charged at your phone company’s basic rate. All calls are recorded for business purposes.
This update is intended to be for information only and should not be taken as financial advice. Before you take any action you should seek advice to check the suitability and tax consequences of any actions that you plan to take. Capital at risk. Origen Financial Services is a trading name used by Origen Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. Our FCA registration number is 192666. Our registered office is: Second Floor, 2 Gladiator Way, Ascent 4, Farnborough, Hampshire, GU14 6XN and registered number 03926629. CA12534 Exp 12/2025.
