Sharing Your Financial Data With Family
It is clearly understandable if you are someone who hesitates to share your personal financial data with your family. There is no doubt that money happens to be an extremely very private affair. It can also heavily alter family dynamics and impact other family members quite negatively. It tends to bring up a lot and there are tremendous stakes in the balance. However, with all that said, it is still encouraged that you open your books to your family.
First, you never actually know when someone else such as your spouse or even a trusted sibling may have to step in and fill in if you become incapacitated for some reason. Also, by including other family members in your circle of financial trust, you will be providing them with the rare opportunity to learn first-hand. Therefore, while the risks are always going to be present, sharing your financial facts is well worth it if you can do it right.
What You Should Be Sharing
First, you need to decide what material you are willing to share. Remember that your purpose is to bring others up to speed for the future. They might need to take over the reins at some point in time. With this particular objective drilled in your mind, it is suggested that you share information on: spending, income, assets and liabilities, life and health insurance, and lastly about your estate planning documents.
In short, if you want to achieve the above-mentioned goal, then the people you share with need to have all the information. Now, if you decide to hold back important information then you have defeated the purpose.
What You Should Not Be Sharing
To achieve your goals, you do not have to spill all the beans on how you plan on splitting up your assets between the family. Nonetheless, if you are not going to split the money up equally then this might be a good time to explain why rather than let family members discover that fact later on.
With Whom You Should Be Sharing
Should you end up on the disabled list, you need to think about who you want to act as your pinch hitter. If you happen to be dealing with adult children, then ideally you should be sharing your financial information with all of them unless there happens to be a really compelling reason not to. The last thing you would want is for your children to feel you did not trust them. You must definitely use your discretion.
This brings us to the end of our discussion on sharing financial data with family. Now, do let us know some of your own thoughts and opinions on the subject.
