How to thoughtfully engage family members on your financial wishes after you die
If you haven’t had a frank family discussion yet on your estate plan, it’s time to communicate your wishes and get everyone on the same page.
With an estimated $750 billion expected to be passed on to the next generation over the coming decade1 – making this the largest intergenerational wealth transfer in Canadian history – talking about your estate plans should be a high priority. After all, you want an orderly, tax-efficient transition of wealth to your heirs. However, it has been estimated that approximately 40% of Canadians have not discussed their estate intentions with their heirs.2
Avoiding future conflict by sharing intentions
For many, engaging in conversations about inheritance may be difficult, primarily because of anxiety over upsetting other family members or the perceived “morbidity” of the topic. But not addressing your plans for transferring your assets after you die can lead to misunderstandings, unpleasant surprises, possible legal complications and, in turn, family conflict down the road.
To avoid the prospect of future family conflict, now is the time to have a practical estate planning conversation. Invite the key people that you’re including in your Will, as well as executors and Powers of Attorney, into that conversation. During the meeting, remember that open communication among everyone involved is key. After all, the more open you are, the more likely that your wishes will be carried out after you die.
Here are some tips to consider for your family conversation.
- Start by clearing the air – It’s important to set the tone right from the get-go. Begin the meeting by clearly identifying the most important issues at hand, and be concrete and clear. For example, you may wish to immediately ensure that everyone is on the same page about your intentions for the future. Or you may want to start off with specific issues, such as how you will distribute your possessions, succession planning, provisions for your care, etc.
- Don’t make assumptions – You should go into the conversation knowing that everyone is likely to see the situation differently. This may become apparent once everyone’s opinions are shared, as family members are often surprised by their children’s or siblings’ perspectives. Therefore, it’s important to clarify what you mean and what others are trying to convey by, for example, reiterating “Just to be clear…”
- Listen to everyone – Let everyone speak and ensure that participants feel heard and understood. Don’t attempt to address concerns and solve problems right away but, instead, process feelings and take note in a non-judgemental way.
- Offer solutions – By setting the right tone and listening to everyone, the conversation will become easier and solutions may begin to emerge on their own. Perhaps you can resolve some differences right away. You may also need to schedule a follow-up meeting. Or, you may need to hold one-on-one conversations instead of group meetings if you think that will drive more constructive conversations.
Call our office today to discuss how to communicate your estate plan with your loved ones, and ensure your legacy is protected well into the future.