Talking to your parents about their estate plan can be awkward.
Do your parents have an estate plan?
Can you answer this question definitively?
According to a recent The Guardian article titled “Discussing inheritance is too important to be left until someone has died”, you should talk to your parents if the answer is “yes” and if the answer is “no”.
Why?
Having clarity on what your parents want to do with their assets and the family heirlooms will give you all a sense of peace.
Yes, it will be a tough conversation.
No one wants to think about the reality of their loved ones dying.
Even if your parents make you a beneficiary to their estate, should you bank on these assets to help you with your own financial demands?
No.
About one-third of millennials will inherit nothing.
For those who do inherit, it will likely occur later.
On average, millennials will be 61 when they come into an inheritance.
This means any assets you receive will come after most of the largest financial milestones in life like paying for college for your children or purchasing a home.
The purpose of this conversation with your parents is not to plan for what you will receive.
The purpose is to encourage them to create a plan, if they do not currently have one.
If they do have an estate plan, then they should be encouraged to meet with their estate planning attorney to review it.
The "conversation" can also help deter divisive arguments and battles between family members after your parents have passed away.
You will be grieving and will need each other.
You do not want to be divided.
Gretchen and I sat down over the recent holidays with our three adult daughters and reviewed our estate plan and assets.
We do "eat our own cooking" here.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: The Guardian (January 13, 2018) “Discussing inheritance is too important to be left until someone has died”
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