Many people hesitate to discuss their estate plans with their children. Even though it might not be easy to have these conversations, a great amount of assets will be transferred from the older generation to the current one within the next few decades. Given the inevitability of this transfer, being transparent with the future generation about your assets and estate plans can make it much easier to make sure that these goals are achieved.
Despite the value of such conversations, one study found that 43% of parents have reported not having a detailed discussion about long-term care plans with their adult children. It is important for all parents to have this critical conversation; the following are the most important reasons why you should consider discussing your estate plan with your children.
Assets are Transferred in the Way You Want
Many people remember to create estate plans, but then fail to discuss the terms of these plans with loved ones. As a result, they never make sure that their loved ones are comfortable with the plan. By engaging in estate planning conversations, you can review each participant’s role as well as their responsibilities.
Minimizing Unnecessary Expenses
Children often do not have the same experience dealing with tax-related issues that their parents do. Nuanced concepts like retirement accounts and step-up basis can be confusing for children who are left to handle estates. Discuss important details with your children, like what type of assets you own and how they are treated from a tax perspective. By discussing these things in advance, you avoid the possibility that your estate will end up subject to undesirable taxes or that your estate will be mishandled by your executor.
Making Sure Your Kids Know You Care
Discussing your estate plan with your children provides a desirable opportunity to connect with your loved ones. After all, discussing how assets should be handled gives a person the opportunity to pass on one’s values and hopes for the future. It lets your kids know you care enough to plan for their future.
A Few Tips on Engaging in Such a Discussion
If you are interested in having an estate planning discussion, the following tips can help to make sure that your conversation is a successful one:
- Make a time for the discussion when everyone is available to engage. This should occur long before any crisis or the need to act immediately.
- Encourage everyone to participate in the discussion and to share their feelings as well as any concerns they might have.
- Remember to be open and honest when having a discussion about the type of medical care you would like to receive as well as decisions involving money, even though these subjects might not be comfortable to discuss.
Speak With a Knowledgeable Estate Planning Attorney
Estate planning is full of challenges, but an experienced lawyer can make sure that your estate plan is capable of achieving each of your unique goals. Do not hesitate to obtain the assistance of an experienced Oklahoma estate planning attorney by contacting attorney Jim A. Lyon today.