Although speaking about death and what’s going to happen once you’re gone are unpleasant topics that people naturally want to avoid, Paul Severo, senior vice president and financial advisor at RBC Wealth Management, points out that the sooner you being thinking about it, the better.
In the article written by Sandra MacGregor, Severo discusses what you can do to push past the emotional aspects of estate planning to make sure your surviving family members can successfully deal with issues that may arise after you pass away.
1) Transparency is Key
To help the people you care about cope with the financial, administrative and familial consequence of your eventual passing, be transparent about what they can expect from your estate. Severo adds that this doesn’t necessarily mean talking specific numbers, but just speaking in general terms can be helpful, as any information is better than none.
2) Three-Year Plan
A good estate plan can easily become outdated or irrelevant if it sits on a shelf. Severo recommends a three-year time horizon for estate planning, including a regular review of your trust to make sure it accurately reflects your current situation and your wishes.
3) Money Sense
Severo points out that it can be all too easy for beneficiaries without any financial acumen to make poor investments. He goes on to explain that the best way to avoid this pitfall is to start teaching your children from an early age. Being transparent about what a beneficiary may receive from an estate, and providing education about how to best manage the endowed assets, can go a long way to ensuring that your wishes are successfully fulfilled.
See Sandra MacGregor, Don't Let Emotion Sabotage Your Estate Plan, May 15, 2015