How family is a threat to an estate plan

On Behalf of | Aug 1, 2018 | Estate Planning

Minnesota residents may find that squabbles among family members can have just as large of an impact on estate planning as taxes do. This is according to a poll by TD Wealth of 109 estate planning professionals. Family issues may come into play in cases where a person has been married multiple times or is significantly older or younger than a spouse. Spending time talking with family members can work to create realistic expectations for what they will receive.

For example, if an individual plans on creating a trust, a child could see that as a punishment. However, a child should be made aware of the potential benefits that one can provide. For instance, it can keep money out of the hands of creditors or others who try to make a claim for it. Conversations can also address any conflicts between siblings or between children and parents.

Individuals should consider that splitting assets equally isn’t necessarily the best plan. Ideally, a parent will consider the needs of each child when determining what to leave for that son or daughter. Regardless of how a plan is created, it should be reviewed on a regular basis. Furthermore, adult children may want or need to be kept informed of any changes as they are made to that plan.

The estate planning process will ideally begin as soon as a person acquires an asset, gets married or has a child. An attorney may be able to help an individual decide which types of documents fit his or her needs. Typically, a person will want to create a will, a trust and a durable power of attorney. After a plan has been created, it should be periodically reviewed.