Money can often be a sensitive topic between families, but it is a necessary discussion that parents should address with their children to avoid potential confusion or financial burdens when they are gone. To properly prepare the next generation to manage their wealth, it is vital to discuss finances and your priorities with your adult children. Below are four key topics to address when talking about wealth:

• Your Estate Plan: Not only should you create a well developed estate plan with an attorney, but you should review all aspects of your estate with your children once you have laid out all your wishes. From your will to any trust funds, and even a letter of final wishes, consider addressing your complete estate and will with your children.
• The Balance Sheet: It is important to be as transparent as possible when discussing your finances, which means talking about both your assets and your liabilities. Consider creating a balance sheet to go through with your children, and address the responsibilities and opportunities that come with eventually inheriting wealth, or possibly debts too.
• The Location of Documents: While this may seem silly or unnecessary, properly organizing your finances in a literal document-sense it key to good financial planning as well. To help your children be fully prepared, place your documents, passwords and financial statements in a central location, and make your children aware to ease anxieties when the time comes.
• A List of Your Financial Professionals: Provide your children with the names and contact information of your financial arsenal, from insurance agents to attorneys and accountants. If you feel inclined, consider even introducing your children to these individuals.

Communication is key when considering your financial future and your children’s future inheritance. While it is important to ensure your children are in a mature place and age when discussing finances, don’t let life get ahead of you without discussing wealth with your children. Parents who are open with their children about their wealth not only make themselves feel more comfortable about the future, but will also provide their children with realistic expectations and a greater understanding of their parents values and financial goals.