Many people are clueless about how to strike a conversation with their kids about their estates. Often, individuals are uncomfortable about talking about their death or their family’s situation post their demise. As much as you would like to avoid talking about death with your family, you know that you cannot escape it neither can they. Therefore, it is wise to accept this fact and have a practical approach towards the situation in the future.
Following are some of the essential reasons why you must inform your children about what do they inherit or likely to be in future-
Reduce the shock
When you do not talk to your family about estate planning then they are likely to be in utter shock when your Will is being read. They will be surprised to know about the executor and some of the choices made by you.
They might be curious to know the reason behind your decision but sadly cannot figure out because of your absence. Instead, be honest and upfront about your intentions to your kids so that they can understand why you took a particular decision.
Help them save taxes
Lifetime gifts are considered to be a less of tax burden on individuals. This gives you an opportunity to pass them assets with higher value as gifts and reduce their stress on the tax payable.
However, it is wise to get in touch with a consultant as they can suggest you optimal solution to save your kid’s estate taxes. Some companies consider the net worth of your estate and help you to frame a fair Will which your children are likely to appreciate.
However, make sure that you seek assistance from the right company and have clear idea about the process and how much does a Will cost. An experienced company is considered to be the safest option if you wish for an accurate estate plan.
Cite clear reasons for your actions
Your children and family may or may not be in the mental capacity to rationally understand your decisions mentioned in the Will. To avoid misinterpretation of your actions or decisions it is important clarify in the Will why have you taken a particular decision.
Often, allocating a particular estate to one particular child may cause sibling rivalry post your demise? Therefore, if you are allocating additional estate to one of your kids then clearly specify the reason for the same in your Will.
All your children may or may not have the same life. For instance, one of your kids may not intend to get married while other might. You probably may plan to leave a part of your estate for your grandchildren’s education.
In such situation, you must make sure that your unmarried kid receives their due right in some or the other way. If possible mention the same in your Will so that there is no room for confusion.
On the other hand, if you have already offered loan to one of your kids then you might provide them an estate of lesser worth to balance out the amount. Make it a point that your kids are aware about the reasons why did you take such a decision.
Discuss about all these small yet important integrities so that after your demise they are not unaware about your intentions.
It is better to offer your kids with disclaimers rather than giving them a shock while your Will is being read. If you are giving a part of your estate for charity then cite them the reason that it is for tax purposes.
Your Will must clearly mention details about the charities you intend to make and the name of the organisation as well. This will minimise all the confusion and conflict amongst your kids.
Above all, every parent would love their children to stay in harmony and intact, even in their absence. It is wise to give them a piece of advice in your parting note so that the love and the family bond stays strong even after you are long gone.
At times, your kid might give you an incredible solution to draft an appropriate Will and hence make sure that you share your intentions with them.