Following the post-COVID stimulus hangover in 2022, the bull market has continued to run. One of the key factors was the Federal Reserve’s decision to
Planning Ahead: Now Is the Time to Introduce Heirs to Your Estate Plan
Published Date : July 30, 2014
While it is commonplace for our clients to craft thorough estate plans and trusts with focus on attorneys and legal documents, the follow up process of engaging and educating the successor generation is often overlooked. By actively discussing your intentions with family members or an executor tasked with settling your estate, you can gain significant legal, financial and emotional benefits. Thorny issues such as familial conflicts, interpretations of wishes, administrative hassles, and stress can be minimized, if not entirely avoided, prior to your death through an on-going dialogue between your heirs and your enlisted financial and legal professionals.
After your estate plan is completed or modified, it is important to introduce at least one successor to your estate plan so as to ensure its faithful execution. When selecting an executor or successor trustee, a logical starting point is to choose someone who exhibits financial responsibility, displays an interest in managing finances, or lives locally. In the absence of a good candidate such as a reliable child or another trusted relative or friend, it may be necessary to appoint a corporate trustee.
Once a successor to your estate is in place, a highly productive strategy is to involve heirs in the administration of the assets prior to your death or diminished capacity. If you have a living trust, consider adding them as a co-trustee now or, in the case of retirement accounts, you may want to grant them Limited Power of Attorney. The intent is not to relinquish control of the assets, but rather it is to include your successors in the flow of information. By inviting them into client meetings, educating them on both the estate plan and taxes, and familiarizing them with the investment process, you can ensure that during the emotionally turbulent time of your passing, your estate plan is smoothly administered. Future conflicts between heirs, such as beneficiaries unhappy with their inheritance, can also be avoided if those conflicts are addressed today. While potentially uncomfortable, resolving family disagreements can help preserve your estate from being eroded by legal and court fees.
It is important to recognize that while your legal will and trust dictates the distribution of your estate to beneficiaries, it is often not done on an asset by asset basis. To avoid any misinterpretation, a Letter of Intent (LOI) can accompany your plan documents and be shared with your successor. Although not legally binding, an LOI can be used to interpret intent and provide the granular instructions to your executor regarding special requests, burial preferences, and asset distribution. For example: “The jewelry collection goes to Jenny but all the cars go to John. Use the remaining cash to equalize the division.”
Communicating your intentions to family, selecting a reliable successor, and integrating that successor with your financial, legal, and tax team will ensure the protection of your hard earned estate. At Sand Hill, we encourage the inclusion of future heirs in your planning and welcome their presence and participation in our portfolio and wealth planning discussions.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
Recent Posts
