Question 1: If I tell my family about my wishes regarding my money and property, can I still make changes?
Absolutely. Whom you share your estate plan with has no impact on your ability to make changes. The flexibility of your plan depends on the type of legal documents you’ve put in place. For example, you can amend a revocable living trust or a last will and testament at any time until you’re incapacitated or pass away. However, irrevocable trusts are generally more difficult to modify if you change your mind.
Talking to your family about your financial wishes can be challenging, and discussing any changes can be even more daunting. However, being open and honest with your loved ones is crucial for ensuring your wishes are respected. We often recommend that families hold an annual meeting to discuss family wealth, address any changes, and, if nothing else, spend valuable time together.
Question 2: If I leave money to my grandchildren and they know about it, will this discourage them from working?
This is a common concern. You’ve worked hard to build your wealth, and you want it to be a blessing, not something that hinders the potential of future generations. If you don’t create an estate plan, the state will distribute your assets outright to your heirs, often with no conditions attached.
However, with an estate plan, you can set the rules. You can include provisions that encourage certain behaviors, like requiring a grandchild to graduate from an accredited college or maintain steady employment before receiving their inheritance. By setting these standards, you can help ensure that your gift supports your grandchild’s development into a productive and responsible individual.
Question 3: Is it better to treat loved ones fairly or equally?
The answer to this question depends on your unique situation and values. For some, treating everyone in the same generation equally is crucial to avoid family conflict after their passing. This approach might reflect the client’s parenting philosophy, where equality among children was prioritized.
Others may feel that fairness doesn’t always mean equality. Different family members may have different needs—one child might earn more than another, or one grandchild might have special needs while others don’t. In these cases, you might choose to allocate your assets in a way that ensures everyone has equal opportunities in life, even if that means distributing them unequally.
There’s no right or wrong answer here. By reflecting on your values and the legacy you want to leave, the right decision will become clear. We’ve guided many clients through this process, helping them craft a plan that aligns with their values, and we’re here to do the same for you.
