Regardless of how tight your family relationships are, talking about money can present challenges. Parents want to equip their children for the responsibilities that come with wealth, but they may fear that too much disclosure will create entitlement, cause conflict or undermine privacy. At the same time, avoiding the conversation altogether can leave adult children unprepared for what lies ahead, and it can create surprises that strain family relationships.

Recent data illustrates just how common these challenges are.

Despite its importance, only 27% of Americans say they’ve had a family discussion about wealth transfer, and 35% report having no plans to discuss it with heirs¹. Even among high-net-worth families, only 69% have a clear succession strategy, and nearly one in four admit to hiding the extent of their assets from heirs².

This lack of communication leaves a significant information gap that can create confusion, resentment and poor decision-making when wealth changes hands.

Preparedness is another concern. Nearly three-fourths of baby boomers don’t believe their heirs are adequately prepared to manage inherited wealth. Research shows that most wealth transfer “failures” occur not because of poor investment performance or tax planning issues, but because families fail to communicate their wealth goals and values³. Families that prioritize transparent dialogue see far better outcomes: greater resilience, less tension and reduced risk of wealth dissipation across generations. Yet secrecy remains common, with 23% of affluent parents concealing major assets from the next generation⁴.

There are three reasons families should push past discomfort and talk openly about money.

First, transparency helps avoid surprises. Inheritance, business succession and shared family assets can all become sources of tension if expectations aren’t managed in advance.

Second, these conversations prepare children to make informed financial decisions. When heirs understand not just the value of the inheritance but its purpose, they are better positioned to carry forward the family’s values and make intentional choices.

Finally, open dialogue strengthens relationships. Research consistently shows that families who engage in transparent financial conversations report higher levels of trust, stronger collaboration and deeper emotional bonds. Millennial and Gen Z heirs increasingly want openness, education and meaningful participation in decision-making. Many want early access to information and engagement, including financial literacy training and discussions about family values and responsibilities—not just a review of account balances.

Even knowing the benefits, many families still hesitate. Parents worry that if children know too much, they may lose motivation or perspective. Others are uncomfortable confronting legacy planning and their own mortality, while some assume their children simply “aren’t ready.” Control and privacy also play a role. For many wealth creators, it can feel vulnerable to share details of finances or estate plans, especially if those details may change over time. These are real concerns. But avoiding the conversation rarely serves anyone well.

Best Practices for Constructive Conversations

So, how can families have these conversations productively?

Start with values, not numbers. Research from family office advisors and wealth psychologists shows that framing discussions around mission and purpose reduces tension and leads to more positive outcomes. Instead of beginning with account balances, begin with what the family stands for: generosity, stewardship, entrepreneurship, responsibility, etc.

The next best practice is to treat the conversations as a series, not a single talk. One of the most common mistakes is waiting until a triggering event—a health scare, a holiday dinner or a sudden decision—to open up. These talks often happen under stress and can be counterproductive. A better approach is to schedule regular, ongoing conversations that evolve as family circumstances change. Just as an estate plan requires updates, so too should family financial conversations.

Use stories and examples. Sharing family history about the origins of wealth, the hard work that created it or past missteps can provide context and reinforce values. These narratives are almost always more memorable and impactful than spreadsheets.

Bring in a third party when needed. Advisors, attorneys or facilitators can help manage sensitive discussions and keep them constructive. Families sometimes find it easier to talk openly when a neutral professional is guiding the process. At Newport, we often step into this role by helping parents articulate goals and then facilitating meetings where children can ask questions in a structured, supportive environment.

The right conversation depends on where your children are in life. For young professionals, the focus might be on budgeting, saving, paying down debt or building financial literacy before wealth becomes a factor. For adult children starting families, it may be appropriate to introduce estate planning basics or explain how family governance works. For heirs or successors, transparency about trusts, business holdings or inheritance structures becomes critical. Tailoring the message ensures relevance and helps children feel respected rather than overwhelmed.

Bringing It All Together

Money doesn’t have to be a source of tension within families. Done thoughtfully, conversations about wealth can be empowering, helping children gain perspective and prepare for responsibility while deepening trust across generations. The key is to start early, focus on values and treat these conversations as an ongoing dialogue rather than a single event.

For families ready to take the first step, professional guidance can make all the difference. Advisors can provide structure, keep discussions aligned with your broader financial and estate strategies and help ensure every voice is heard. In this way, talking about money becomes less about disclosing numbers and more about passing on purpose, which is the foundation of a lasting family legacy.

 

IMPORTANT DISCLOSURES:

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. In addition, information presented in this presentation is believed to be factual and up to date, but Newport Capital Group, LLC does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.

This presentation includes forward-looking statements and opinions, including descriptions of anticipated market changes and expectations of future activity. Forward-looking statements and opinions are inherently uncertain, and actual events or results may differ materially from those reflected in the forward-looking statements. In addition, all expressions of opinion are subject to change without notice in reaction to shifting market conditions. Therefore, undue reliance should not be placed on such forward-looking statements and opinions.

The tax and estate planning information offered by Newport Capital Group is general in nature.  It is provided for informational purposes only and should not be construed as legal or tax advice.  Always consult an attorney or tax professional regarding your specific legal or tax situation.

Past performance is no guarantee of future performance.

 

Sources:

1 https://www.businessinsider.com/wealthy-family-office-rich-heirs-succession-planning-jpmorgan-survey-2024-4

2 https://www.edwardjones.com/us-en/why-edward-jones/news-media/press-releases/great-wealth-transfer-research

3 https://www.rbcwealthmanagement.com/en-us/insights/how-to-talk-to-your-kids-about-their-inheritance-why-wealth-transfer-conversations-are-crucial

4 https://www.businessinsider.com/wealthy-family-office-rich-heirs-succession-planning-jpmorgan-survey-2024-4