Estate Planning: What and When to Communicate With Your Beneficiaries

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UC19

When developing your estate plan, the first step should be identifying what your goals are, beginning with how much and who you’d like the beneficiaries of those assets to be. After you’ve quantified your goal and designed a tax-efficient distribution plan with your estate planning attorney, the next question becomes: What and when should I tell my heirs?

Some clients are more open than others when it comes to talking about money. Some may have a specific reason why they need to talk about it, whereas others may not feel it’s not appropriate until after they’re gone. Based on our experience, every client is different, and you are going to hear varying opinions on the subject. In our opinion, what information you choose to share is completely dependent on the circumstances, such as:

  • How comfortable are you with talking about money?
  • Are the recipients of your estate mature enough to understand what you are telling them?
  • Are the recipients of your estate mature enough to handle the legacy you’re leaving?
  • Do you believe your heirs need any financial education prior to receiving their share of your estate?
  • Is there any jealousy or bad blood between the various respective heirs?
  • Could the way you divided your estate create tension between the respective heirs after you’re gone, particularly if discussed in advance?

These are all important questions you should be asking yourself during the estate planning process, and we would suggest consulting with your team of advisors prior to discussing or sharing any information with your heirs. At the end of the day, you should do what makes the most sense for you and your family’s needs.

This commentary contained herein is intended for informational purposes only and should not be construed as tax, legal or investment advice. Past performance is not indicative of future results. Clients should obtain their own tax, legal or investment advice based on their circumstances. The material is based on sources deemed reliable but is not guaranteed.

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