Estate planning is family business—even if you don’t own a family business. What does that mean? It means that estate planning isn’t just about the documents and legalities; it’s about family dynamics, communication, and legacy.
More and more, I’m seeing clients who, once they get into the weeds of their estate plan, realize just how intricate and involved it can be. They start to see the moving pieces, the potential complications, and the importance of having everything documented and in order. And that’s great! But then they realize something else: They need to bring the rest of the family into the loop.
Historically, this kind of discussion has been common for business owners who need to plan for the succession of the family business. But now, even non-business owners are recognizing the need for transparency and communication within the family. And that’s a really positive shift because estate planning is part of financial literacy and it’s crucial that families understand what’s going to happen when the time comes.
Of course, there are situations where it may not be appropriate to discuss the entire estate plan with the family—maybe due to family dynamics, chemistry, or other sensitive issues. But generally, having a clear conversation about the basics of the plan can avoid confusion and disputes down the line.
More and more, I’m being asked to meet with clients’ children to explain the mechanics of the estate plan—how things are structured, what will happen when the parents pass away, and how the assets will be transferred. This is not just limited to business owners anymore. It’s part of a broader push towards financial literacy, and it’s absolutely necessary.
Having these conversations helps ensure that there’s no confusion when the time comes, and it allows children to be more prepared for what lies ahead. At the very least, it’s important for your children to know who your estate planning attorney is, so they have a point of contact when the inevitable happens and they need guidance on how to administer the estate or trust.
So, think about it: Even if you don’t own a family business, your estate plan is still family business. It’s about creating a legacy, ensuring smooth transitions, and making sure everyone is on the same page. Don’t leave your family in the dark; bring them into the conversation, and help them understand the plan.