Estate planning is an essential task you should take on as you get older and begin to acquire more wealth. Your estate plan allows for the transfer of assets to your desired heirs upon your death, yet many people have yet to create one of these plans.
According to a survey by Caring.com, only 33% of those in the U.S. have put together an estate plan. If you have one of these plans in place and want to talk to your children about it, here are some tips for managing this conversation.
Springboards for conversation
Do not wait for a crisis to occur to tell your children about the details of your estate plan. You may want to approach the subject when one of your children reaches a milestone birthday, receives a promotion at work or has a child. You may also want to talk about your estate plan after you update your will.
Information to divulge
You do not have to provide information about exact numbers, but you should give insight into the framework of your estate plan. For example, let your children know if you have long-term care insurance, if you intend on gifting money to fund any of your grandchildren’s college education and what the scope of the inheritance looks like.
Talking about your estate plan before your death can reduce family conflict and disputes over your estate plan. It can also help your children gain a greater understanding of your choices by explaining your intentions early on.