Summary: To best
ensure that your estate plan functions as intended, and will not suffer from
confusion, conflict or misunderstandings on the part of your loved ones, you
should have a conversation with your loved ones about your plan. In many cases,
these conversations may provide essential knowledge to your loved ones and
allow them to better carry out your objectives than if they were acting solely
on the information contained in your estate planning documents.
People may have many
reasons for procrastinating the creation of an estate plan. Even after you've
overcome all of these reasons and taken this important step, there's another
thing you need to do: sit down with your loved ones to discuss the planning decisions
you've made.
Some people worry that
telling their loved ones about the detailed contents of their estate plans
might create hard feelings. For example, they may fear that an unequal
distribution between their children might lead to friction among those
siblings. Alternately, others may fear that telling a loved one that he/she
will receive a large inheritance may sap that person's motivation to work hard
to earn his/her own money.
Nevertheless, it is
essential to have this "family meeting" about your plan. Sitting down
and having an open, honest conversation with your family will help remove
elements of surprise about the terms of your plan and lower the possibility of
a loved one making an emotional, hasty decision to launch a legal challenge in a
moment of shock and disappointment after you've passed.
Additionally, this
communication is particularly necessary if you are going to ask one or more of
your loved ones to serve as agents in some capacity within your plan. Whether
you have chosen your loved one to be an attorney-in-fact under one of your
power of attorney documents, your agent under your living will, the executor of
your will or the successor trustee of your living trust, that loved one needs
to know that you have made this choice (ideally, you've already discussed this
part of your plan and he/she has agreed to serve) and needs to know where all
of your important papers so that he/she can do the tasks necessary to fulfill
the objectives you've asked him/her to do.
By having these conversations
well in advance, you allow your loved ones to learn about your plan in a calm
and non-stressful situation. The conversation will allow you and your loved
ones to have a dialogue, and for you to explain why you've chosen to leave the
legacy that you have. These conversations can help your family avoid
misunderstandings, confusion and strife after you've passed, which will help
your executor and/or successor trustee carry out your wishes in a smoother,
more efficient manner.
In many cases, these conversations
can also give your loved ones vital insights into your goals, objectives and
motivations and, for those loved ones selected to serve fiduciary roles (such
as successor trustees or estate executors,) these communications can help these
fiduciaries more effectively carry out your wishes than if they were operating
based solely on what was written in your estate planning documents.
This article is
published by the Legacy Assurance Plan and is intended for general
informational purposes only. Some information may not apply to your situation.
It does not, nor is it intended, to constitute legal advice. You should consult
with an attorney regarding any specific questions about probate, living probate
or other estate planning matters. Legacy Assurance Plan is an estate planning services-company
and is not a lawyer or law firm and is not engaged in the practice of law. For
more information about this and other estate planning matters visit our website
at legacy Assurance Plan.
No comments:
Post a Comment