For many families, the only time most everyone is together is over the year-end holidays. That’s why people often choose this time to discuss their estate plans with their adult children and other loved ones.
If putting your estate plan in place is one of your goals for the new year, it can be helpful to talk with those who will be most affected by it – both as beneficiaries and administrators. You may have a clear idea of your goals and simply want to let your loved ones know what they are, or – like many people – you may want to get their input.
What kinds of things should you address?
A good way to organize your estate planning conversation is around the key documents in your plan. Of course, the will is the backbone of any estate plan. In addition, you may have:
- A revocable living trust, which can help keep the bulk of your estate out of probate
- Conditional trusts for leaving assets to specific family members, with a trustee to control disbursements
- Advance directive for health care with a health care surrogate who will have power of attorney (POA).
You may name the same person or a different one to have POA over your finances if you were to become incapacitated.
It’s crucial to make sure that those to whom you’re giving POA and other positions of authority and fiduciary responsibility agree to take on the job. That’s particularly important for the person you name as your personal representative (executor) and any trustees. It’s wise to name an alternate for each of these responsibilities as well.
These family conversations can help you determine what to do with certain large assets, like a vacation home, your own residence, a boat and even smaller sentimental items and family heirlooms. You can also explain any decisions that might be unpopular or at least confusing — for example, if you’re leaving more assets to one child than the others.
It can be tempting to avoid these conversations. However, if your family knows your reasoning, they’re less likely to challenge your will or other documents after you’re gone.
Every family is highly unique – as is every estate plan. That’s why it can be helpful to get some experienced estate planning guidance to help you better prepare for and manage these sometimes-difficult estate planning conversations.