It’s good to talk
Lloyds Bank’s recent advertising campaign tackles a common taboo – talking about money with family. The advert raises the question: what other important issues are people scared to talk about openly?
Kuldeep Chauhan, an associate in our family team, discusses how forethought and communication can prevent a whole host of issues.
One topic that the majority of people find hard to bring up is the possibility of a relationship not working out. Nobody wants to think about break-ups, but they are always a possibility, no matter how impossible it seems at the beginning. However, if a person plans to live with their partner or get married to them, broaching the topic is vital.
Talking about pre-existing assets before entering into a housing contract or marriage is important. It allows agreements to be made, such as living or pre-nuptial agreements, giving people a level of protection over their assets. These agreements clearly lay out which assets will remain the property of the individual and which will be shared, avoiding arguments at an already stressful time.
It may also be worth considering creating a Declaration of Trust. Individuals can allocate trustees to manage any monies gifted to them from parents of family, or any property that is owned prior to the relationship commencing. This ensures the individual’s assets remain theirs.
Talking openly about finances and property can be uncomfortable, but not doing so can lead to animosity and issues in the future. Wanting to protect personal assets is not something to be ashamed of. It’s time to tackle the taboo.