Jump Start Your Estate Planning

While estate-planning may not be at the top of the list for busy boomers focused on planning their own retirements, among those who leave an inheritance, only 43 percent said they did not feel the need to discuss it with heirs.  Yet those who do break the silence will improve communication and problem solving within their families.  “While that may not seem like an urgent goal now, laying the foundation will help families function better in the decades to come, when health or elder-care crises are more likely to put family dynamics to the test.”

When experts talk about estate planning, splitting up assets is only a single part of the equation.  Parents should talk about naming an executor of a will, as well as financial and medical powers of attorney.  “These things are really loaded, particularly when they’re secret.” 

Parents can also explain about what these responsibilities entail.  It is important for adult children to know where to find key documents, such as bank and brokerage account information, and any life insurance or long-term care policies that are in effect. 

Experts recommend not to spring these topics on family members.  It is helpful to give a heads up about the topic under discussion.  “You want to build a sense of bonding and family before you introduce material that could be emotionally loaded.”

See Elizabeth O’Brien, Estate Planning: It’s Never too Early to Start, Market Watch, Oct. 23, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.