Conversations with your parents about estate planning can be uncomfortable. You worry they might be offended by the topic and question your motives.
But eventually, they will pass away, and there are a few reasons why you and your parents need to have an open and honest conversation about an estate plan.
1. Ensuring their wishes are honored
The primary goal of discussing estate planning with your parents is to ensure their wishes regarding healthcare, asset distribution and funeral arrangements are respected. Documents such as a power of attorney, advanced health directives and letter of intent can provide clear directions regarding their preferences and who can make decisions on their behalf if they cannot do so.
2. Avoiding probate
Probate is the legal process of handling a deceased person’s estate, such as paying creditors and distributing remaining assets to the heirs. It can be a long and costly ordeal. Furthermore, probate records are available for the public to view. A well-crafted estate plan that includes trusts, transfer on death deeds, joint tenancy with rights of survivorship, and named beneficiaries allows your parents to pass their assets directly to their heirs without the hassle of probate.
3. Minimize family drama
Family disputes can arise when there are no clear instructions about the distribution of assets. By having an estate plan that clearly outlines who gets what, your parents can help reduce misunderstandings and conflicts among siblings and other relatives.
4. Provide peace of mind
Having an estate plan can comfort your parents by knowing their affairs are in order and their loved ones will be cared for.
A conversation about estate planning with your parents may be uncomfortable, but it’s essential. Make sure your siblings are part of the discussion to prevent conflict. If you need assistance with the estate planning process, several resources are available.
