Tax Insights

Even if your children are now grown with families of their own, I’ll bet that you can remember scenes of passionate sibling rivalry during their younger years. In some families the rivalry dissolves as the children age and mature, but it can all come flooding back while they divide up your estate after your death.

If you die without a will, a court will decide, based on state law, who inherits your property and your children may be left to divide your assets (house, car, jewelry, investments, family heirlooms, etc.) evenly or work it out themselves. This will likely create problems and expenses! I have seen many estates consumed by enormous professional fees and broken family relationships due to unpleasant dynamics.

But it doesn’t have to be this way. You can make it easier on you and your family by taking a few simple steps to make sure your estate is in order. Whatever the size of your estate, the first step is to have your intentions put in writing, either in a basic will or a will plus the trust documents that will be needed to carry out your wishes. An estate planning professional can help you make the best decision to fit your situation.

Once you have the plan in place, discuss it with your family. If anyone has any questions about the details, or any quibbles, they can be addressed and ease future family squabbles. Your family should not dictate your actions but they should be informed about your wishes. Discuss how you want your personal property to be divided. It is better to put together a list with a description of the property and who you want to have it. Sharing your list with your children should alleviate hard feelings later.

Putting together an estate plan is not as daunting as it might seem at first, and it pays big dividends in the long run. Not having an estate plan can cost your family not only in dollars and cents, but also in family discord.

Pamela Wheeler, EA