Clear communication can make a painful process less fraught when it comes time to divvy up the assets.
Are you your family’s provider? Peacekeeper? Both? You can help ensure your legacy in that regard continues when you’re gone by making your final wishes clear and keeping it simple.
Even if your family gets along just fine, having a clear plan in place can help avoid legal costs and minimize family stress while making it more likely that your final wishes become a reality.
That’s true even if you don’t have a lot of bread to break when the time comes to pass it on. Here are five ways to help reduce the complexity of what can be a painful process.
1. Communicate clearly while you can
Make sure your family and other stakeholders clearly know your wishes, including what you plan to see happen with your assets and why you made those decisions. Clearing the air and setting the terms in advance can help lessen conflicts and confusion when the time comes.
2. Where there’s a will, there’s a way
A will is step one in estate planning. This legal document lays out how your assets are to be distributed after your passing. It also designates an executor for your estate and, if there are minor children, designates a guardian. Keep the will clear and concise: That will help avoid confusion and maybe lessen the chance of disputes among your heirs, especially those that could land the issue in probate.
3. Trust a trust to bolster estate planning
Trusts are legal entities that hold and distribute assets to beneficiaries according to specific instructions by the grantor, living or not. They’re not the same as a will, because they can be used to manage and distribute assets — including to yourself — during your lifetime and provide to the other beneficiaries after you’re gone. They can also offer some tax and creditor protection.
4. Selecting beneficiaries has its benefits
Beneficiaries are simply that: The folks who inherit the benefits in the form of money or real property or other assets. That can include life insurance policies, retirement accounts such as IRAs and 401(k)s, and investment and bank accounts. Each account that has them indicated is an account less likely to be successfully disputed and makes your final wishes clear.
5. Things change — so can your mind
Life changes — people are born, die, divorce, have their assets shrink or grow, you name it. Review your estate plans regularly to make sure all the pieces are still where you want them and that your final plans remain clear.
Providing and protecting: Keeping it simple for those left behind
Your heirs will be the ones who benefit from your assets, and they’re also quite likely to be the people you care about most, regardless of how they feel about each other. Hopefully, all is swell, but that’s hardly a given.
An estate plan that is simple, direct, and up to date can help ensure your final wishes are met, protecting your legacy while providing the most benefits possible to your heirs.
