Talking about your demise is not one of the most comfortable discussions you can ever have with your loved ones. However, death is inevitable, and given that your assets and the people you care about will be impacted by your death, it is important that you hold this discussion one way or the other.
Here are valid reasons why you should consider discussing your estate plan with the people you care about.
An opportunity to make things clear
It is not uncommon for probate proceedings to be characterized by heirs fighting each other because they believe mum or dad did not mean what the will document says. Situations like leaving a car to child A and a sum of money to child B or setting up a trust can be clearly explained during these conversations. The last thing you want is to assume your heirs will have no problem with your will or other estate planning documents, and that no one will contest your will.
An opportunity to understand your children’s needs and concerns
While discussing your estate plan with your children, you will gain a better understanding of their needs and concerns. Perhaps you have been under the impression that you should designate your elder son, who is a medical doctor, the healthcare power of attorney. But after the conversation, you learn that they may not be comfortable making difficult decisions regarding your end-of-life wishes.
Avoid unnecessary expenses
Most children do not have the same skill and experience dealing with estate tax issues as their parents. Assets such as retirement accounts can be quite confusing to children should they find themselves in a situation where they have to manage them. Discussing your estate plan with your children allows you to explain to them the nature of your assets and how they are handled from a tax perspective. This way, you can avoid the possibility of your estate ending up with undesirable taxes.
There are many benefits that come with discussing your estate plan with your children. Find out how you can structure a fruitful conversation around your estate plan with your loved ones.