You most likely have goals for how you want to use your wealth. Consider a well-outlined estate plan and multiple conversations to help pass down your goals.
It can be a difficult subject to bring up, but talking to your family about your estate plan allows them to stay up to date on your wishes and keeps them informed. Help prepare your family for the future by having this discussion now instead of during a time of stress and grieving.
We put together a few tips you can use when preparing to talk to your family about your wishes for your estate.
Have the discussion early
Talking about your estate plan sooner than later can help everyone involved. It’s better to have a thought-out plan to help ensure your family meets your wishes without any unnecessary stress.
As a financial firm committed to multi-generational planning, the AdviceLink team is always available to participate in or lead these discussions with your family. Often, having an informed third party in the conversation can keep the focus on the plan, while remaining empathetic to each family member’s emotional state.
Also, having your current financial advisor team in conversation with your family builds a bridge for your legacy, while making sure your kids know they have support even before a wealth transfer begins.
Come prepared
Start this discussion after you have prepared. Before you talk to your family, let our office create a detailed estate plan that can help you communicate your wishes to your family.
This plan will likely include…
Your financial objectives and goals
What do you want to happen with your assets once you’re gone? Usually, these goals are based on your personal values and priorities, which your financial professional can help you narrow down.
Your current financial situation
What is your situation now, and what will it likely be when you pass away? This includes life insurance coverage, long-term care plans, retirement spending, and outstanding mortgages.
Share as much or as little as you are comfortable with your children but be sure you don’t mislead or set false expectations.
Who will be in charge of the finances?
Which of your kids will oversee handling the finances when you’re gone? This could be the one who is more organized or has more experience with financial matters. It may just be the one who is closest geographically and who has easy access to your paperwork. Alternatively, you could also have your financial professional do this for you.
With any option you choose, just be sure to share this information with everyone involved so you have a chance to share your reasoning and the person in charge isn’t surprised by the responsibility.
How your assets will be split
This may be the hardest topic to discuss, but if your assets are going to be uneven, it may be helpful for your kids to understand why. Also, this can be a good time to manage expectations.
If you would like your family to be a part of this process, select one or two family members who have your best interests at heart to help you create a plan with your financial professional.
Be transparent
Go into this discussion knowing that it may be an emotional one. It’s essential that you’re transparent when talking about your estate wishes. Speaking in vague terms or hypotheticals can lead to confusion. Be clear and direct about what your estate plan is and what your wishes are.
Be empathetic
Go into this discussion with empathy. Encourage your family to share their thoughts and feelings. Actively listen and allow everyone to share what they’re thinking while avoiding potential disagreements.
Your family may want more time to consider everything you’ve shared with them. If they need more time, allow them to deliberate on everything and come back to the topic after everyone has had a chance to consider what you’ve shared.
Estate planning can be a complex process—both financially and emotionally—for a family to go through. The one thing that can ease this tension is an open conversation.
If you’re worried about your ability to facilitate those conversations, remember that we are your advocate. It is our job to support your decisions and make your goals a reality, especially when it comes to passing down wealth and values to the next generation.
This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.