While making an estate plan is a deeply personal matter, it will likely affect several other people. Therefore, it may be wise to talk to some of them about your plans when you make them — or at least shortly afterward.
Here are three reasons that discussions with your potential heirs is wise:
1. Better asset distribution
Talking to people about what you propose to leave them allows you to take into account their likes and dislikes. For example, why leave your youngest daughter the diamond ring if she would never wear it, but your eldest would?
There are sometimes financial considerations relating to how or when you pass on assets. For example, someone with an impending business lawsuit against them could lose what you leave them if they have not yet set themselves up as a limited liability company rather than a sole trader.
2. Provide reassurance
Seeing you seriously ill or dead will be traumatic for those close to you. While knowing you have a plan in place, and knowing some details of the contents won’t change that, it can at least remove some of the potential sources of stress. For example, they can know who will be able to access your account to continue paying the mortgage, or what you would like to happen to your minor children.
3. Reduce the risk of negative consequences
Families can sometimes fall out over estate plans. You can try to prevent this by explaining any potentially contentious decisions while you’re still alive.
Remember, death or serious illness or injury does not always give advance warning, so it is best to get started if you have not yet made your estate plan or told others about it. Legal guidance can help clear up any queries you may have, as well as better understand how to make your plan effective.