I have a close friend who married his second wife recently, both in their 80s. Each had established their wills and trusts prior to marriage, but not after. While they had had conversations about including one another in their plans, prior to an incapacitating medical emergency, they had not met with their attorney or their families to update the documentation of their final wishes.
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THIS TWOSDAY'S TAKEAWAYS
Don’t put off having the tough conversations with your family to set clear expectations.
Do your research to see if a trust is right for you.
I have a close friend who married his second wife recently, both in their 80s. Each had established their wills and trusts prior to marriage, but not after. While they had had conversations about including one another in their plans, prior to an incapacitating medical emergency, they had not met with their attorney or their families to update the documentation of their final wishes.
By the nature of my work, over the past two decades I have been often asked by our clients about beneficiaries and estate planning, and when I do, I always offer the same two pieces of advice.
Careful intergenerational planning is a close collaboration between families, attorneys, tax preparers and financial advisors. But often, not everyone is in the loop. For some the task can seem daunting, regardless of the amount or complexity of assets or the unique family dynamics. It can be difficult to weigh priorities, consider successors, and substitute successors and to know how best to address difficult situations that may arise.
Many high net worth investors will turn to irrevocable trusts to as an effective estate and tax planning tool planning. When correctly documented, trusts allow grantors the ability to consider a number of scenarios for allocation of assets that clearly identify decision makers and recipients of beneficial assets. Thinking though this process requires the consideration of a number of possible scenarios which may precede the passing of a grantor, such as the passing of a survivor or trustee. Trusts can be complicated and costly, and not necessarily the right plan for everyone. A carefully crafted trust require input from your team of advisors; lawyers, accountants and financial advisors who work together to develop the best plan for your unique needs.
Any planning you do should include those who you choose to be trustees and beneficiaries, who can all be best served by having a clear understanding of your wishes. As time passes, your wishes may change, trustees and beneficiaries will need to be updated, and new scenarios may become more clear. Take the time to communicate with family your intentions, and clearly document your wishes so there is no question.
