By Deborah Verni
Only about 40 percent of adults in America have a will, which may not be entirely surprising. No one wants to be reminded of their own mortality or spend too much time thinking about what might happen once they’re gone.
Many people are uncomfortable discussing how they will distribute their estate with their children. Perhaps you don’t want your children to realize how much they may receive after your death. Or you may think your choice of heirs could change in the future.
However, if you don’t discuss your estate plan, disagreements and conflicts could erupt once the details of inheritances are revealed. For instance, siblings may resent each other if distributions are not equal. Children may resent a spouse from a second marriage if they feel that spouse is using up their inheritance.
At that time, you won’t be able to explain your thoughts and wishes regarding the distribution of your estate.
Discussing your estate plans will give you an opportunity to inform your children about the distribution of your estate and why you decided to do it in that manner. You can go into specific detail, informing children how each asset will be distributed, or you can give a general overview of your estate plan.
If you have selected one child as executor or trustee, explain why you chose that individual. As an alternative, you can leave a personal letter with your estate planning documents explaining these items.
Even if you reveal your plans to children, you may also want to include a personal letter. In that letter, include information about death and other benefits, special wishes, who should receive personal effects, your cemetery and funeral preferences, and the location of your safe deposit box and important documents.
At a minimum, specify where the following documents are located: income tax returns, life insurance policies, other insurance policies, investment details, a list of household contents, outstanding loan documentation, automobile titles, important warranties and receipts, checking account information, credit card details, and information about your home.
This letter will help your heirs identify all assets and benefits and avoid speculation about your wishes.
Preparing the letter will also force you to organize your records and make sure all important documents can be easily located. Since the information is likely to change, review the letter at least annually.
You have worked hard to create a legacy for your loved ones. You deserve to decide what becomes of it.