Tips for talking about inheritances

On Behalf of | Jan 16, 2019 | Blog

Taking time to talk with family members about estate planning can be worthwhile for Nevada residents. Having this conversation can make it easier to plan for a range of issues such as where money will come from to pay for a parent’s long-term care. It can also make it possible for family members to create a plan to transfer wealth while minimizing inheritance and other taxes.

Depending on a given family’s dynamics, talking about how assets will be transferred can cause confusion or conflict. In some cases, adult children don’t feel comfortable bringing up estate planning topics because they feel that they would be out of line. According to an Ameriprise study, only 21 percent of participants said that they told their children how much they were going to receive. To make the conversation less awkward, it may be best to focus on practical matters at first.

For instance, it can be a good idea to bring up broad topics such as whether a parent has a plan or what they want it to look like. Ideally, an estate plan will consist of a will, a living will and a power of attorney for financial and health care matters. Trusts can also be effective tools to help transfer assets and handle other estate plan issues in a strategic manner.

A last will and testament may allow a person greater control over what happens to assets after he or she passes on. If necessary, a pour-over will can be created to fund a trust when a person dies. A trust can be ideal for those who want to provide for their children and protect an inheritance from creditor claims. An attorney may talk more about various estate plan tools and their potential uses.