Why Estate Planning Is the Ultimate Act of Love for Your Family

Estate planning is important for everyone regardless of wealth or family status because if you become incapacity or pass away without an estate plan, you are leaving the distribution of your assets subject to state law – and the results may not be what you want or expect.

What is Estate Planning?

Estate planning includes the growth, protection, and transfer of a person’s wealth through the creation and maintenance of an estate plan. The concept of estate planning is important and twofold: (1) to have a strategy that will maintain your financial security during your lifetime, and (2) to ensure that your intended transfer of property and assets occurs upon your death. Both of these issues are analyzed through the lens of the unique situation of the family and the possible expense of different methods used in the estate plan.

Benefits of Estate Planning

There are several benefits to having an estate plan. At a minimum, an estate plan provides clear written guidance to your loved ones on what to do with your assets when you are deceased. But perhaps the most important reason is to be in control of how your family is provided for in the event of your death or incapacity. Estate planning can address several issues, including:

• Who will raise your minor children,
• Who will inherit your assets and how they will be distributed,
• Who will care for loved ones who are unable to care for themselves,
• Who will care for your pets, and
• Who will receive your life insurance and other insurance proceeds.

Finally, good estate planning can ease the time-consuming, administrative strain placed on your family during an already difficult time.

Estate Planning Statistics

According to studies^{1, 6 in 10 adults have not put a will in place. And, while many have likely heard that it is wise to avoid probate – the legal process by which the assets of a deceased are disposed of under court supervision – many do not understand why probate should be avoided. Three main issues with probate include: (1) the tying up of the decedent’s assets for months or even years while the probate is open, (2) the cost, sometimes as much as 5 percent of the estate’s value is spent on attorney and court fees alone, and (3) the loss of privacy in the probate process when it comes to the decedent’s financial information.}

Having the Estate Planning Conversation During the Holidays

The holiday season, when families gather together, presents a natural opportunity to discuss estate planning. While it might seem like a heavy topic during festive times, consider this: the holidays are about family, love, and caring for one another – exactly what estate planning represents.

Here are thoughtful ways to approach the conversation:

• Use family gatherings to your advantage. When multiple generations are together, you can naturally transition into discussions about family legacy, values, and future security. Instead of launching directly into talk of wills and trusts, start with shared stories about family heirlooms or traditions you want to preserve.
• Frame it as a gift of peace of mind. Rather than focusing on death or incapacity, emphasize how estate planning is about caring and protection. You’re not just planning for the worst – you’re ensuring your family’s well-being and making things easier for them during difficult times.
• Keep it light but meaningful. Try starting with: “You know, one of the things I’ve been thinking about lately is making sure everything’s organized for you all…” or “I want to make sure you never have to worry about making difficult decisions on my behalf…”

If you’re meeting with adult children, consider scheduling a family meeting separate from main holiday celebrations. This gives everyone dedicated time to focus on these important matters while keeping the holiday celebrations festive.

Remember: Estate planning isn’t about wealth – it’s about love and responsibility. It’s ensuring your family is cared for and your wishes are honored, which is perhaps one of the most meaningful gifts you can give during the holiday season.

¹ https://www.aarp.org/money/investing/info-2017/half-of-adults-do-not-have-wills.html

There are many financial and legal tools that may be used in the estate planning process. Contact us today to discuss your situation and learn about your specific options.