Discussing estate planning is difficult for many people. It can be a complicated and emotional subject whether you are thinking about your own planning process or hoping to start a conversation with a loved one about theirs. However, discussing an estate ahead of time can lead to peace of mind for everyone involved. Read on for some key tips to keep in mind when having conversations about estate planning.
Give yourself enough time
The most important tip is to start discussions as soon as you can. Give yourself enough time to get your ducks in a row and try not to wait until you or a loved one is sick or unable to have the conversation. It’s also important to clearly think through how you want to present this information to the people who will be impacted by it.
Another step you may consider taking sooner rather than later is looking into a whole life insurance policy. The death benefit from this policy could help loved ones cover estate taxes for a larger estate or provide them a tax-free sum for everyday needs.
Think about who you want to include
It’s important to include anyone who will be affected by the estate planning in your discussions. This includes family members, a trustee or executor, and potentially an attorney or a financial advisor. Including experts in these conversations can be beneficial if difficult questions arise or family members want a seasoned professional to weigh in.
Be compassionate
Oftentimes, estate planning can lead to conflict and hurt feelings among family members. This is in part due to the emotional nature of the discussion—what will happen when a loved one dies—and because conversations about finances can sometimes be uncomfortable. It’s important to acknowledge the difficulty of these discussions and make space for compassion and understanding.
Communicate clearly
It can be helpful to create a list of talking points or an agenda ahead of time. This can help keep the discussion on track and make sure that you or your loved one’s goals, priorities, charitable interests, assets, debt, healthcare, and any inheritance are covered. This is also a good time to bring up any life insurance policies, such as universal life insurance, and the added protection, benefits, and flexibility of having such a plan in place.
Encourage conversation
It’s important to help everyone feel engaged and part of the conversation. This may mean you need to intentionally create opportunities for more soft-spoken participants to share their opinions. While feedback on the estate may not necessarily change your or your loved one’s mind, it’s still important for key stakeholders to feel heard and acknowledged.
Discussing estate planning with your loved ones is never easy, but it may give everyone some solace to know a clear plan is in place when the time comes.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value will reduce the death benefit and may affect other aspects of the policy.
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