Deciding What to Tell Your Adult Children regarding Your Estate Plan (Part II of II)

Deciding What to Tell Your Adult Children regarding Your Estate Plan (Part II of II)

PART II

In Part I of this blog post, I covered the general considerations for all estate planning clients in deciding what to tell their children in advance. In the second installment of this blog post, I wanted to cover the additional considerations when your estate plan includes more complex planning items such as high-value estates and business succession planning. A few suggestions on these items to help you work through your own unique situation include:

  • Is the value of your estate going to be significant?
    ‘Significant’ is a relative term, but if your estate planning involves considerations related to estate taxes, credit sheltering, or any other details above and beyond the typical family will or revocable living trust, then there are a few extra factors to consider. On the one hand, it is probably not advisable to share the details of your estate plan if it would complicate your children’s lives (e.g. tax issues, marital issues, lifestyle changes, etc.). On the other hand, it is important to prepare your children (even if they are not aware at this point) for receiving a large inheritance. Accordingly, discussing these issues with your estate planning attorney are important, as he or she can assist you with planning strategies to reduce the impact of an unexpected inheritance as well as referring you to a financial planner that can assist you and your children down the road.
  • Is a family business one of the assets in your estate plan?
    If the answer is yes, then you are probably familiar with the phrase “succession planning” and the extra steps and strategies that must be considered. As a result, because this situation involves more of a ‘process’ than an ‘event’, it is highly advisable to not only share the details of your estate plan with your children but also setup a forum to discuss the plan with the entire family (regardless of whether some children are not involved in the business). This forum could be a single meeting or series of meetings for you to explain how you addressed the business in your estate plan and any changes (e.g. leadership, ownership, etc.) that will occur during your life, as well provide your children with the opportunity to openly discuss operational, financial, and legal issues. And in most cases, your estate planning attorney should be more than happy to assist with preparing for (and even hosting) the meeting. Overall, by doing this, you will hopefully be able to get everyone ‘in the loop’ and allay any fears and concerns that your children have.

After factoring in these issues and the more general ones covered in the first installment of this blog post, I want to reiterate that there are some very important factors to consider. But again, no matter what you decide, please keep in mind those ‘bare minimum’ items that should be shared with your children (i.e. that you have done estate planning and where those documents are located, who your key advisors are, and what immediate steps that your children should take when after you die).

As always, if you have any questions about this issue or estate planning in general, please do not hesitate to contact me or another one of our estate planning attorneys here at Cunningham Dalman.

Author(s)

Cunningham Dalman, PC publishes this web site and its component parts to inform users about our firm, our attorneys and general new developments in the law. The web site and blogs are not intended as legal advice on any matter. There are many factors that may affect your situation. You should not act or refrain from acting because of information found here without first seeking appropriate legal or other professional advice from someone who is familiar with your particular circumstances.

In the operation of this web site and our blogs, we do not intend to create an attorney-client relationship with you and no such relationship shall be created by your use of this web site. Such a relationship can only be established to the extent an attorney at Cunningham Dalman, PC expressly agrees to undertake the relationship. Please do not communicate to us any information you regard as confidential unless and until we have established a formal attorney-client relationship with you. Any information you send to us before we establish an attorney client relationship may not be privileged or confidential. Information you send to us over the Internet may not be secure.

 
Attorneys...
Our Practice Areas
Our Practice Areas

Recent Posts

Contact

Cunningham Dalman P.C.
PO Box 1767
321 Settlers Road
Holland, MI 49422-1767

Google Map

 

Best Law Firm 2023 - Best of the Best
Scroll to Top

Tell Us How We Can Help You

Send us a quick message or call us at 616.392.1821!

Seminar Registration

Fill in the form below to reserve your spot today for each person attending. If you have any questions, please call the office at 616.392.1821.

Seminar Registration

Fill in the form below to reserve your spot today for each person attending. If you have any questions, please call the office at 616.392.1821.

Seminar Registration

Fill in the form below to reserve your spot today for each person attending. If you have any questions, please call the office at 616.392.1821.

Call Now Button