Creating an estate plan is the smart and responsible thing to do as an adult. It will help you better understand your financial situation and can be used to reduce tax obligations and guide investment decisions.
All this is just a bonus to the true purpose of your estate plan – to ensure that your assets are distributed based on your wishes after you pass away. However, if you are not careful, your estate plan may also lead to conflict among family members in the future. Some tips to help you create an estate plan that reduces the potential of conflict can be found here:
Communicate with your family
While this may seem obvious, it is smart to communicate your wishes with your family and heirs to reduce the possibility of conflict. Usually, conflict occurs if one person believes they understand what you wanted to happen, but someone else disagrees. Making sure your wishes are known to everyone involved before you pass away can reduce the possibility of this strife after you die.
Consider if you want to split your assets equally or fairly
When planning to give your assets to your beneficiaries, you have an important decision – you can split assets equally or fairly. When splitting things equally, it means that everyone gets the same thing. However, there are situations when one child may need more support in the future than the others. Splitting assets fairly based on your beneficiary’s needs and the situation may make more sense in this case.
Creating an estate plan that works for your family
No one wants their family to fight over their possessions after they pass away. However, if you are not careful, this may happen. Knowing your legal rights and options is the best way to create an estate plan to prevent arguments.