How Much to Share and With Whom
As the tax deadline quickly approaches, you’ve probably been working on your tax returns. If you’re like most people, you probably don’t feel comfortable sharing the details of your tax documents. But, your estate plan is an important part of making sure your affairs are in order. So, when it comes to estate planning, we recommend a little out-of-the-box thinking. To effectively plan your estate, you may need to share part of the picture with your family members.
Are you confused about when and what to share with your family? If so, you’re not alone. You may be worried about stirring up family tension or fear that broaching the subject of Powers of Attorney and healthcare directives isn’t appropriate dinner table fodder.
How to Include Family in your Estate Plan
But before throwing the baby out with the bath water, consider the benefits of letting your family know key points covered in your estate plan – especially regarding planning for incapacity. Understanding your wishes will better prepare your family should the need arise. Sharing your preferences in the event of incapacity will save your family members from stress and confusion.
But you don’t have to share the content of your entire estate plan with family. Fortunately, it doesn’t have to be an all-or-nothing proposition.
Option #1: Open Book
Although total transparency is an option, it might not be the ideal choice, depending on your family dynamic. But, in any case, this level of openness is appropriate for anyone who anticipates that help may be needed soon or is already in process via a successor trustee and/or other agents. The best way to decide what to share is to consider what you would want to know if you were in your family members’ shoes. Too much information could overwhelm and lead to family disputes. But too little information could cause misunderstandings, stress, and time delays when action is required.
Option #2: Just the Facts
You might find that sharing a summary is simpler and more effective than getting into the nitty-gritty. If you decide to summarize, discuss the ways your estate plan works or “flows” without including specific asset-related information. For example, tell your family about the types of documents in your plan and the function each document so that your loved ones understand who will be in charge and the general manner of distribution and management of assets. This might include explaining the basics of health care directives, powers of attorneys, and trusts.
Option #3: Need to Know
If you don’t want to divulge every detail of your plan, you could instead share only with those who “need to know.” Let your entire family know who you have named as trustees, executors, and health care agents to avoid confusion. If you sign a waiver, we can provide a copy of your documents to these people upon your incapacitation or death. This option would help prepare your family for the future without overwhelming them with specifics. It could also help guard your privacy.
Estate Checkup?
As you ponder how much detail to share with your family, consider reviewing your estate plan. If you were re-doing the plan today, would you still select the same person as successor trustee? Health care agent? Guardian? Caretaker for pets? Straightforward changes like these are incredibly important to make sure your plan works as intended. If you have questions or would like to make changes, give us a call. We’re here to help.
About Skvarna Law: Estate Planning, Elder Law, Probate, Trusts, and Wills
Skvarna Law Firm operates offices in Glendora and Upland, California and provides legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
