Talking about money with ageing relatives isn’t always easy. You may worry it might come across as prying, or that the discussion could be uncomfortable.
But raising these topics early shouldn’t be about helping you or other potential beneficiaries. It’s ultimately about giving your older loved ones peace of mind, protecting their wishes, and ensuring plans are in place for both their future and the future of their estate.
If handled with care and consideration, these discussions can make a big difference.
Here are five important financial conversations worth exploring with older family members.
1. What are their plans for supported living or care?
Your elderly relatives may require additional support as they grow older or might even feel lonely if they live on their own.
If their needs aren’t too demanding, you may consider inviting them to live with you. Alternatively, they might need someone to visit their home to assist with basic tasks, or they could require full-time assistance either at home or in residential care.
Each of these options carries financial and emotional implications, and it’s important to be prepared.
Talking through possible scenarios in advance and exploring how costs might be met through pensions, savings, annuities, or other resources can help reduce stress and avoid rushed decisions later on.
It also means your relative can play an active role in deciding where and how they live, rather than them feeling as though decisions are made on their behalf.
Having this conversation early means your relative, and perhaps the wider family, can incorporate care costs into their financial plans, ensuring there are enough resources in place to cover future needs without creating unexpected strain.
2. Have they registered a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal arrangement that means a trusted person can step in to make decisions if your relative loses capacity.
There are two types of LPAs:
- Health and Welfare LPA – This allows the attorney to make decisions about medicine, care, and treatments. It only comes into effect if your relative can no longer make their own choices.
- Financial and property LPA – This allows the attorney to manage bank accounts, pay bills, sell property, and handle other financial matters. It can be used straight away if needed.
You must have full capacity to register an LPA, so it’s best arranged sooner rather than later.
3. Do they have an updated will and pension nominations?
A will is one of the most important documents for ensuring that assets are passed on in line with personal wishes rather than default inheritance rules. So, it’s a good idea for your relative to review it regularly and update it whenever their circumstances or intentions change.
It’s equally important to check pension nominations. These are treated separately from a will and determine who inherits any remaining pension savings. Given that pensions are often among the largest assets people hold, keeping nominations up to date is essential.
Regularly reviewing both a will and pension nominations can help avoid confusion, ensure assets are distributed as intended, and provide peace of mind for loved ones.
This conversation can be delicate, as you want to ensure your relative doesn’t think you are trying to get them to change their will or nominations. So, it’s important they understand that you want to ensure their wishes are met, rather than that you want any personal gain.
4. Have they explored estate planning strategies?
There may be various estate planning strategies that your relative doesn’t know about or hasn’t explored that could help ensure more of their estate is used according to their wishes.
For instance, they might want to use trusts to control how their wealth is passed on, or they may not know that the residence nil-rate band allows them to pass an additional £175,000 of their property wealth free from Inheritance Tax (IHT).
They may also not be aware of the value of making gifts and charitable donations, or even investing in a business that could benefit from Business Relief.
These strategies can reduce future tax burdens while also helping family members. Having open conversations about estate planning options can improve the efficiency of your relative’s estate and also help prevent misunderstandings later.
5. Would they consider working with a financial planner?
A financial planner can help your relative put their finances in place to ensure they are supported as they grow older.
From updating wills and setting up LPAs to planning for long-term care and organising their estate efficiently, professional advice ensures decisions are both practical and tax-efficient. Having an impartial party involved can also make sensitive family conversations much easier.
While these discussions may feel intimidating at first, addressing them early can help bring reassurance and peace of mind for both your relative and the wider family.
To find out how we can support you or an older relative, get in touch.
Email admin@stonegatewealth.co.uk or call us on 01785 876222.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
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