Transparency and Your Estate Plan

When it comes to discussing estate planning with adult children, many experts believe transparency is the best approach.  Yet, what “transparency” actually means will differ according to the client and the specifics of the estate and family members.  In some instances, it will mean sharing all details of the will, trust, and other estate planning documents.  In other cases, the details might remain obscure, but sharing certain kinds of information should take place.  Some factors to consider include:

• What to tell.  At the very least, family members should be told where the estate planning documents are located, who are the key advisors and what immediate steps they might need to take if an unexpected death occurs. 
• How to tell.  Thoughtful families bring together all adult children to have a conversation, focusing on the meaning and purpose, rather than a “pre-reading” of the will.  An ethical will can be shared before death as an opener to these conversations.
• Special circumstances.  Some families are in positions where more (or less) disclosure is advisable.  In a family business, succession planning for management and ownership should be seen as a process, not a one-time event. 
• What not to tell.  When life expectancy increases, many clients with adult children could possibly deplete their resources before their demise.  Thus, it makes sense to withhold specific financial information and other details to preserve a sense of autonomy over their lives.

See Patricia Angus, Should Parents Tell Their Adult Children What’s in Their Estate-Planning Documents? Yes, Wealth Management, Feb. 23, 2015. 

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