Estate planning is often a sore subject within families. Even if you strive to make decisions that are fair and just, your heirs can still end up frustrated by them after you are gone.
This highlights the importance of speaking with your heirs now, so you can explain your thought processes in detail. According to Marketwatch, the following are a few estate planning topics that you must discuss with your family.
Your Current Financial Status
Your estate will pay down any remaining debt in your name when you die. As a result, your current financial status can affect how much money heirs get after creditors receive payment. If you have substantial debt, your family should know about it. If you have concerns about your debt level, you can also explore estate planning tools like revocable trusts.
Your Wishes For Medical And Financial Powers Of Attorney
Powers of attorney can make medical or financial decisions on your behalf. Their assistance is crucial if illness or injury renders you incapable of making decisions on your own. You can choose your spouse, a sibling, an adult child, a parent, a relative, or a friend. The person you choose must exhibit responsibility in their life to perform their duties successfully.
What You Included In Your Will
Your family should have an understanding of your total assets, including bank accounts, property, life insurance policies, retirement funds, and other forms of income. Additionally, they should know how you plan on dispersing these assets among your heirs.
While it is often an uncomfortable conversation, it is better for your heirs to know your decisions now. This provides you the opportunity to explain your thought process and answer their questions.