Connect with us

Personal Finance

How to talk to your adult children about their inheritance

Published

9 months ago

on

Momo Productions | Digitalvision | Getty Images

Older Americans really don’t like talking to their adult children about inheritances, a new study suggests.

About two-thirds — 68% — of parents age 55 or older with at least $500,000 in investable assets haven’t told their grown children what they’ll inherit or if they’ll inherit anything at all, according to Fidelity Investments’ 2025 Family and Finance Study. Roughly a third, 35%, don’t want their children to know how much they’ll get.

Reluctance to divulge estate plans is common, financial advisors say. Reasons can include concerns about demotivating their kids or starting conflict, or even just an unease with discussing money in general, said certified financial planner Mitchell Kraus, founder and principal of Capital Intelligence Associates in Santa Monica, California.

“But avoiding the conversation usually creates bigger problems later,” Kraus said. 

$124 trillion expected to go to heirs by 2048

The Fidelity study involved parents ages 55 and older with at least $500,000 in investable assets and whose children are ages 25 to 54, as well as a matched sample of adults ages 25 to 54 who have a living parent age 55 or older with at least $500,000 in investable assets.

The bulk of those adult children — 95% — say they’re ready to manage inherited wealth, Fidelity found, even though 25% of their parents disagree.

More from CNBC’s Financial Advisor 100:

Here’s a look at more coverage of CNBC’s Financial Advisor 100 list of top financial advisory firms for 2025:

There’s an estimated $124 trillion that baby boomers — those born from 1946 to 1964 — and older generations will pass on between 2024 and 2048 as part of the so-called great wealth transfer, according to research from Cerulli Associates. Of that amount, $105 trillion is expected to go to heirs, and the remainder to charity. More than half of that $124 trillion is expected to come from people with at least $5 million in investable assets, according to Cerulli.

You don’t need to share ‘exact numbers’

Financial advisors typically recommend discussing your estate plans with your adult children — even if you only offer a broad overview.

“We generally recommend they at least tell their kids how the assets are going to be divided,” said CFP K.C. Smith, managing associate at Henssler Financial in Kennesaw, Georgia, which ranked No. 46 on CNBC’s Financial Advisor 100 list this year.

“You can share some basic information about the structure of your estate plan, but you can keep the exact numbers undisclosed if you think it would be problematic,” Smith said.

An estate plan isn’t only for the rich. In basic terms, it should include not just a will that dictates where you want your assets to go, but also who gets powers of attorney for financial decisions if you are unable to handle them on your own, as well as a living will, which specifies your wishes for end-of-life health care.

There is a particular situation when it may be best not to discuss plans with an adult child, said certified financial planner David Kozlowski, president of Verus Financial Partners in Richmond, Virginia, which ranked No. 8 on the CNBC Financial Advisor 100 list this year.

It’s “when they are still enabling their adult child,” Kozlowski said.

If the goal is financial independence, “discussing inheritance with children that retirees are still supporting will lead to more dependence on their parents, not less, in our experience,” he said.

Handling uneven inheritances

Additionally, it may be harder to want to share information about unevenly passing on your assets — i.e., one sibling getting more or less than the others. However, financial advisors generally recommend getting the conversation out of the way to avoid conflict after you’re gone.

“When parents explain the thinking behind their decisions, adult children almost always respond better, even if the plan isn’t perfectly equal,” Kraus said. “It gives them context and prevents that classic moment down the line when someone asks, ‘Why did Mom do this?’ at a time when no one can answer.”

There also may be another reason to avoid talking about exact numbers, Smith said. “Just because there are ‘X’ dollars today, it doesn’t mean it’s going to look like that at death,” he said.

Circumstances will change, Smith said, and it’s impossible to know how dramatically. “If something happens that we had not projected, then the [inherited] amount could be substantially different,” Smith said.

However, if the inheritance is likely to affect the child’s estate or tax planning unexpectedly, it may be worth giving them a better idea of what’s coming their way.

It’s also a good idea to include some other key estate planning information with your adult children, such as who do they call if something happens to you, where is the will or trust document stored — “things like that so they aren’t scrambling when they obviously are going to be grieving and doing an estate settlement, which can be complicated,” Smith said.

Related Topics:
Continue Reading

Personal Finance

$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

Published

6 days ago

on

August 8, 2026

By

The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

Continue Reading

Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

Published

1 week ago

on

August 7, 2026

By

Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

Continue Reading

Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

Published

2 weeks ago

on

August 1, 2026

By

As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

Continue Reading

Trending