It is a tradition for many people to spend their holidays with loved ones each year. During this time, the family bonds and gets to talk about so many issues that affect their lives. They talk about their successes, plans and failures, and go ahead to forge the way forward.
But few families take the time to talk about estate planning.
While someone might feel like they need to say something, they don’t know what to say and when to bring up the topic. Remember this is the time when the whole family is at the same place, and important decisions need to be made.
Many times we try and avoid uncomfortable conversations to make the family gathering fun and relaxed, but this is the only time in the year where the family is at the same place. Well, you don’t need to talk about all the financial issues that are vital to the family at this time, but one issue needs to be handled urgently – estate planning.
The Conversations
When it comes to estate planning, you need to have different conversations with your family. For the conversations to be meaningful to everyone, it is wise that you break them into smaller categories and approach them when you see that the time is right.
Let us look at a few conversations you need to have with your family.
Healthcare
This should be at the top of the list of the issues you need to handle regarding the estate plan. The aim of this conversation is to understand what kinds of healthcare directives are available for the parents and close family members. You also need to know who has the capacity to make decisions on behalf of the family members.
For instance, ask your parents the type of medical treatment they prefer when they are incapacitated. Well, the conversation isn’t an easy one to have, but the knowledge will help you make decisions when the time comes.
The Roles of Different People in Estate Planning
When setting up an estate plan, different roles need to be filled up by the family members and other people. It is best to understand what these roles are and who holds them; because life is unpredictable and anything can happen.
- Personal representative/executor – this person is responsible for assessing the assets, clearing any debts that are pending and then assisting the family to execute the will.
- Guardian – if you have small children in the family, then you need to have a guardian to look after them when the parent passes. The guardian also looks after parents that are aged or who are incapacitated.
- Power Of Attorney (POA) – this is the person that will make decisions on your behalf when you pass. This can be a lawyer or one of the children.
- Living will – this is a document that details what needs to be done when the person is incapacitated and can’t make a life or death decision.
Insurance Beneficiary
Many parents haven’t taken out a life insurance cover yet. In case they do, then you need to discuss the coverage and who has been put as the beneficiary.
Components of the Estate
Before you can make a decision on what to say in a conversation about estate planning, it is important that you understand what items make up the estate.
Know what is included in the estate, and how it is to be divided among different beneficiaries is a vital conversation to have.How do You Start the Conversation?
Starting this conversation might be hard for many people, especially when they have a family gathering that is going too well.
If you don’t know how to start the conversation with your parents, you can consult your estate planning attorney to assist you. Remember that at times your parents are waiting for one of you to begin the conversation.
Here are a few tips to start the conversation:
- Seize the right opportunity. Wait for a conversation about financial issues to come up then slot in the conversation. If someone else introduces estate planning in the conversation, jump on board!
- Highlight a conversation about the topic that you had with someone else, and relate it to your family situation.
Conclusion
When it comes to estate planning, try and make sure you have introduce the topic to your family. There are a lot of items you need to talk about with the family, therefore make sure you find the best times to start this conversation.
