Talking to your Kids

Introduction/Overview:
Seems logical for parents and other benefactors to talk to
their children and other heirs about their plans. That avoids surprises, lets
everyone know their role and responsibility, and more. But it almost never
happens.

√
Question: What really needs to be communicated with
the children or other heirs?

√
Answer: Most importantly, and let’s deal with this
first, if an heir is a fiduciary, you have to talk to them in that capacity.
What do they need to do and when? Where is the key information they will need? How
will they find what they need? What advisers can, and should, they
call?

√
Question: Why do most people avoid doing
this?

√
Answer: It is surprising and irrational to not talk to your
fiduciaries, but most don’t do it. The topic is viewed as unpleasant and if
you’ve named one child and not another, that brings up a raft of other emotional
issues. Also, I suspect, many people really don’t have their affairs in order,
so talking to a fiduciary, such as the child who will be your agent under a
power of attorney, may bring their neglect to light.

√
Question: What about talking about
inheritances?

√
Answer: Very few people are comfortable doing this
and this lack of communication is a key factor in estate disputes, family
disharmony and causes a large portion of the estate related lawsuits. Its is
very rare that this is done. The problem that it creates is lack of knowledge, which
results in children and other heirs having unreasonable expectations. The
surprise in the end, whether they get dramatically more or less, can be quite
negative. Yes, even inheriting exponentially more than you expect can disrupt a
child’s life in a negative way. Being prepared is always
best.

√
Question: What about when a child is disinherited or
receives less?

√
Answer: That is much harder to talk about but even
more important to address. Not discussing these issues in advance can result in
a blow-up of monumental proportions, pit one heir against another, and more.
Addressing it in advance, however difficult, is almost (not always) preferable.
If the situation is really delicate, you can address it with other heirs (not
the one being left out) so that they at least
understand.