High net worth investors (HNWIs) are holding back from discussing wealth planning due to a fear of disagreements, new research from Rathbones has suggested.

One in 10 (10%) HNWIs said they avoid talking about money and long-term financial plans due to fear of disagreements while a further 27% said they find talking about money and wealth planning with their immediate family to be uncomfortable.

However, Rathbones warned that avoiding these conversations could prompt misunderstandings later on, as family members form an idea of their inheritance before knowing what they may, in reality, receive.

The research, based on a study among 1,002 HNWIs, found that 12% have regular check-ins with their family, although 23% of HNWIs said they want to talk about money and their financial plans but just don’t know how to start the conversation.

Rathbones’ findings also uncovered some potential friction points between older and younger generations. When asked if they are expecting to receive inheritance, around half (49%) of those under 35 believed this to be true, although one in 10 aged over 50 were worried their family may be disappointed with their actual plans to pass on wealth.

The research also underlined a clear generational divide when it comes to discussing financial matters, with 27% of HNWIs aged over 50 thinking that the younger generations are more comfortable speaking about money than they are.

Senior financial planning director at Rathbones, David Nelson, said: “Before speaking to family members about inheritance plans it’s important to consider your goals for the discussion.

“Whether that is the basics of establishing who will receive what or the finer details for example, what you would like your inheritance to go towards. Having a clear idea of this should help your family members to understand your wishes and why you have chosen to share your inheritance the way you have.

“Although this may lead to some uncomfortable discussions, making sure your inheritance plans are arranged will avoid shock and disappointment down the road.”

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