UBS: Affluent are avoiding inheritance discussions with kids

For those on the receiving end of a potential inheritance, their top barriers are:

• Their families don't talk openly about financial issues (46 percent)
• It does not feel like a pressing issue (31 percent)
• They do not want to appear greedy (23 percent)

The survey adds that when heirs know the details of the inheritance plan ahead of time — i.e., they have seen the will, know approximately how much wealth there is, how it will be divided and where the assets are — they are more satisfied with the inheritance process (89 percent). Additionally, when heirs do not know the details ahead of time they are more than twice as likely (27 percent vs. 12 percent) to disagree with family about the inheritance distribution.

The situation is worse when there is an unresolved issue, such as who is going to inherit the family home, prior to a parent's passing. In these cases, satisfaction among heirs plunges, and the likelihood of disagreements about the inheritance distribution skyrockets (82 percent vs. 11 percent). Sensitive issues like deciding the fate of the family home may not be simple to resolve prior to a parent's passing, but it will only be more complicated after they pass without clarifying their intentions on inheritance.

Regarding blended families (second marriages involved), where disagreements among heirs are more common (27 percent vs. 15 percent for nuclear families) and satisfaction with the distribution process is lower (56 percent vs. 83 percent for nuclear families), having the conversation is more important.

Read the full report here.