No matter how close your family is, you can never predict the ability of money and coveted assets (whether monetarily valuable or not) to tear them apart after you’re gone. This can be avoided, or at least minimized, by simply putting some extra time and attention into your estate planning process.
That means not only making sure your documents are clear and legally valid. It often requires having difficult conversations while you’re still alive and well.
Don’t neglect to create an estate plan – and keep it current
If you’re preparing to put your estate plan in place, you’re already taking an important step to avoid family conflict. However, in the upcoming years, changes in your assets, your family and your wishes will likely necessitate modifying your plan from time to time. One advantage of having experienced legal guidance is that your plan can be written in a way that minimizes the need for changes. For example, listing alternate beneficiaries and administrators can prevent having to make changes if someone predeceases you.
Look out for those who may lack maturity and judgment
If you have an adult child who’s less than responsible with money or has an addiction issue, you don’t want them wasting your hard-earned money or using it to harm themselves. You don’t want your family to watch that happen. You can place an inheritance in a trust with conditions. They just have to be valid, like how much they can get at one time or what it can be used on (not whom they can or can’t marry). Be cautious about choosing the trustee. Having a sibling or even a parent hold the strings to an inheritance can cause a rift. You may want to choose someone you trust outside the family.
Don’t be afraid to communicate
If there are any terms that you think will be unpopular or confusing, talk to your loved ones about it now so they understand your reasoning and be confident that it’s your sincere wish. For example, if you’re giving your children unequal inheritances, make sure they know why. Maybe one has been your primary caregiver as you’ve aged. One child may have already received more financial help than the others. Don’t expect your spouse or one of your children to explain it to anyone who is getting less.
With sound estate planning guidance and careful thought, you can create an estate plan that will save your loved ones unnecessary conflict and pain after you’re gone.