While many parents are hesitant to talk about money or financials with their children, speaking with them about your estate plan now can have a profound impact on your legacy—and how much you pay in estate taxes—later. There are three key reasons why you should consider talking with your children, or beneficiaries, about your estate plan ASAP.
So Your Assets Get Transferred The Way You Intended
When creating an estate plan, many people name a child as the trustee of the estate, but rarely discuss their role with them, or what will be involved on their end. No matter who is named the trustee of the estate, it would be beneficial to speak with them about their role to ensure they’re comfortable accepting it, and to make sure your intentions are fully understood.
By speaking with the intended trustee now—while you’re well and able—you can specify where they can find important documents and valuables, as well as share important information, like the names of financial institutions that you have accounts with. These simple conversations can ensure that none of your accounts are forgotten, and no important bills go unpaid.
To Minimize Unnecessary Taxes and Expenses
When it comes to handling someone else’s estate, things can get confusing quickly…especially if your trustee doesn’t know the ins and outs of your estate plan. It is vital that you speak to your beneficiaries regarding any accounts that you may have—to explain why you have them, what they contain, and how they are handled from a tax perspective. Taking the time to help your beneficiaries understand what tasks they will need to handle will make this administration of your estate easier on your family, and also give you peace of mind knowing that your estate will be handled how you intended.
To Ensure Your Kids Know You Cared
Sharing information about your estate plan with your children and beneficiaries is a great way to let them know how much you care about them. Discussing the decisions you’ve made and why will leave no questions unanswered after you pass away. This is also a great time to share any wishes and intentions you have regarding inheritance planning. For example, if you took out a life insurance policy intending for your grandchildren to use it for college tuition, make sure your beneficiaries know this. When your intentions are known, they have a better chance of being fulfilled.
If you have questions about planning for your future, do not hesitate to reach out to the experts at the Deliberato Law Center either by calling our office at (216) 341-3413 or writing us using the contact form on our website.
Contact the Estate Planning Attorneys at Deliberato Law Center