Creating your estate plan isn’t easy. You have to think two steps ahead about how the end of your life will affect your spouse, your kids, and the rest of your family.
If you think planning is challenging, telling your heirs about the designations you made in your estate plan can be even more uncomfortable.
There are a few things to consider when telling your successors about your estate plan, as well as legal terms to know ahead of time to help you explain your designations and how each heir will receive his or her inheritance. This will allow for open and clear dialogue and limit disputes after your death.
Considerations for Telling Your Heirs About Your Estate Plan
One of the most important aspects to consider when telling your heirs about your estate plan is making sure they know exactly what your estate planning designations are. This promotes an open dialogue and invites communication about your wishes. This conversation allows you to explain why you have made certain decisions, gives your heirs the opportunity to ask questions and ultimately helps prevent the possibility of disputes arising in the future from upset beneficiaries.
In case a major life event occurs (ie. you passing away or becoming incapacitated), your heirs will know how to plan accordingly as to what they will receive. To go along with this, we recommend updating your estate plan every 3 to 5 years or whenever a major life event occurs to ensure all changes are documented accordingly. Your heirs should be notified when changes are made if those changes will affect them.
Know the Difference Between an Estate Plan, a Will, and a Trust.
When telling your loved ones about your estate plan, it is important that each of you understand the difference between an estate plan, a will, and a trust. All these are important aspects of the estate planning process.
The estate plan includes all of the documents that specify what happens to your assets after you pass away or are otherwise unable to care for yourself. This typically includes a will and/or trust, a power of attorney, an Advance Medical Directive, and more.
A will is a legal document that takes effect after you pass away. A will identifies the assets each of your beneficiaries will receive from your estate after you pass away and your debts have been paid.
A trust is a legal entity that takes effect as soon as it is signed. A trust holds legal title to the assets placed in the trust and governs how those assets will be administered both during your life and after your death.
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Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
