Reasons to Talk to Your Children About Estate Planning

Speaking freely with adult children about delicate estate planning matters can help to avoid problems down the line.  Here are seven reasons why you should clear the air:

1. Avoid surprises.  Instead of leaving children wondering why you made certain decisions, be upfront about your intentions.
2. Refine your plan.  Hearing a child’s preference might make you think twice about your current plan.
3. Save taxes.  If the estate tax is an issue, making lifetime gifts now can save on estate taxes later.
4. Adjust expectations.  If you’ve already given your children large gifts, they may be wondering if that’s all they are going to get.  Set the record straight.
5. Explain yourself.  Children may accept your decision more easily if you’ve explained why you made your decision.
6. Anticipate a disclaimer.  Find out if your children would consider disclaiming their inheritance.
7. Promote harmony.  Talk to each child about their ideas and opinions.

See Deborah L. Jacobs, Seven Reasons to Tell Your Kids What They Will (Or Won’t) Inherit, Forbes, Nov. 27, 2013.