Articles Posted in Estate Planning

During the holiday season, we often take time together with family and reflect on the year as it comes to a close. As we have all gotten a year older, this can also be a time to talk with older parents and other family members about the management of assets going into the future. Especially for those who are founders of a family-owned business, this can be an opportune time to start talking about the what and how of asset management and estate planning.

People resist change, so these conversations can be particularly challenging. There are different levels of resistance, including the problem level of resistance (“There is no problem,” “There is a problem, but it isn’t the one you see,” or “The problem is outside of my control,” etc.), the solution level of resistance (“We agree on the problem but disagree on the direction or details of the solution,” “The solution has too many negative consequences to be doable,” etc.), and the implementation level of resistance (“There is no good way to implement the solution,” “The solution is too risky,” etc.). Additionally, there may also be resistance on a social or psychological level, spoken as “We don’t do it that way here” or “I don’t think so”.

For each level, there are different sets of questions you can ask to help overcome that resistance. Here are some questions that can help you start this conversation:

Whether you prefer storing records “the old-fashioned way” with physical documents kept in cabinets and folders or storing records “on the cloud” or in some way digitally, most people today have at least some digital documents and assets. It is important to plan for who would access your digital assets should you become incapacitated and how digital assets would be distributed after you pass away.

Here are some basics to know when it comes to estate planning for digital assets:

1. What is a Digital Asset?

Estate planning for a family member with mental health issues can be challenging. It can be hard to figure out what this person is able to handle on their own and what they may need assistance with, especially as this may change either gradually or quickly with time.

In many cases, this family member is someone who has been getting by on their own or with some help from a parent or sibling. However, if that parent or sibling passes away, more distant family members may sense that this person needs assistance but be uncertain of what to do. These family members may feel that they don’t have any legal obligation to do anything, or they may let the fear of doing the wrong thing keep them from doing anything at all.

People may also not understand their family member’s mental illness itself, especially if the person has not received a diagnosis. It is common for people to exhibit signs of mental illness but not be diagnosed or receive treatment, and family members are often left guessing about the diagnosis and how they can help.

The third week of October has been designated by the United States House of Representatives as National Estate Planning Awareness Week since 2008. The intention behind this is to help the public learn more about estate planning and the impact it has on overall financial wellness.

Estate planning is often thought of as just making a will when one may be close to death. Though estate planning documents do determine what happens to property after someone passes away, a complete estate plan also helps with managing property during one’s lifetime. This is especially important for those with a family-owned business. In addition to this, health care proxies, powers of attorney, and other documents are used to ensure that someone’s financial and health care wishes are honored while they are living. It’s best to do this planning before the documents are necessary and while one is healthy and able take the time to make the best decisions regarding their finances and health.

Being proactive in your estate and financial planning allows you to:

As I began writing about in last week’s post, there are a number of important factors to consider when deciding who to name as trustees, powers of attorney, health care surrogates, and executors while working on your estate plan. Here are a few more tips to keep in mind:

4. Pick the best agent for today

Especially for those who do not have children, the answer of who to choose as an agent may not be obvious. If the person who would be appointed as agent is older, there’s a chance that person would be the first to pass away. If someone is considering appointing a friend, they may worry that the friendship won’t last and that that person would not be a good choice or be willing or able to serve as their agent when the time comes.

When implementing estate planning documents, one of the biggest challenges people often run into is the choice of who to name as their trustees, powers of attorney, health care surrogates, and executors. Here are some tips for deciding who to appoint:

1. Give preference to those who have the most time to devote and live nearby

You may have children who are very successful professionals, leaders, or business owners, but sometimes these are not the best choice since they often have tighter schedules and less time to devote to helping you with your affairs. Also take into account if any of your children have more children of their own to care for or other time-consuming obligations.