No one wants to talk about their estate plan and put a damper on their holiday celebrations. However, if this is one of the few times your adult kids and other close family are together with you, it can be wise to set aside time for a discussion.
If putting your estate plan in place is something you’re doing in the new year, this will allow you to share your overall goals – like dividing your assets evenly among the kids or giving one child a particular asset they may have expressed an interest in.
This could be anything from a valuable piece of art to your vacation home on St. Simond Island. It’s always smart to check with heirs and other beneficiaries before leaving them a large asset like a home to make sure they want it.
What documents should you address?
Whether you’re still in the information-gathering phase of estate planning or you’ve already begun, a good way to organize your discussion may be to address the documents you’ll likely have. These include:
- Your will (and possibly a living trust)
- Any special trusts you’re considering (like a conditional trust or family trust)
- Heirlooms, jewelry and other assets you plan to give individual children or grandchildren while you’re still around.
Note that if you plan to keep these smaller items and let specific loved ones have them after you’re gone, this information should be included with your estate plan.
Choosing those who will have administrative and fiduciary responsibilities
If you don’t have an advance directive for health care and health care agent as well as a financial power of attorney (POA), now’s the time to set those up and designate the people to whom you’re giving these authorities. Even if it’s your spouse, you should have an alternate.
This is a good time to discuss whom you want to have other administrative responsibilities over your estate – particularly your executor and any trustees. If you’ve chosen a particular adult child – even as an alternate to your spouse – it’s smart to talk a little bit about how you made the decision.
Your own family dynamics will determine how you approach this conversation. Having professional estate planning guidance can help you better prepare for it.