Peace of Mind Starts Here
By: Samantha Banks, Attorney at Law [Family Reunions]
Summary: Family reunions, despite their potential for chaos, often serve as a surprising catalyst for estate planning. These gatherings offer a unique chance to observe shifts in family dynamics and facilitate important conversations about long-term care or business succession. They also bring to light changes in family structure, like new marriages or adoptions, highlighting the need to update wills and trusts. Ultimately, reunions provide the crucial push many need to finally address important estate planning decisions.
It’s All Relative! How Family Reunions Can Be a Catalyst for Estate Planning
Let’s be honest, family reunions can be messier than Cousin Eddie’s BBQ Hamburger Helper (from National Lampoon’s Vacation) and can trigger significant changes in estate planning for several reasons. These gatherings provide a rare opportunity for multiple generations to interact, observe dynamics, and discuss the future—sometimes sparking reflections or revelations that lead to updates in legal and financial documents.
Observing Changes in Family Dynamics
Family reunions allow people to notice changes in the health and behavior of aging relatives or heirs. They also provide opportunities to evaluate relationships with extended relatives and reconsider who has specific roles in estate planning documents. Evaluating these changes might lead to an adjustment in inheritance (amount or method of inheritance – i.e. inheriting through a separate share trust or special needs trust), replacing a previously named successor trustee or personal representative, etc.
Initiating Hard Conversations
Family reunions may provide opportunities for hard discussions related to estate-planning. With the fast pace of life, these gatherings are likely the only time extended family members will be in the same room until the next year. These discussions might include formal family meetings to cover topics like long-term care for aging relatives, business succession planning, or estate plan transparency. They can also involve revisiting past concerns or addressing new ones. Don’t be afraid to have the hard or uncomfortable conversation. You’ll be glad you did!
Including or Excluding New or Old Family Members
Family dynamics are messy, and there’s nothing hotter than the tea served at a family reunion. Divorce, adoption, new partners, stepchildren, etc., all become topics of conversation at these gatherings. Many times, these life changes aren’t revealed to the extended family until they’re all sitting around the campfire. What goes better with a little family gossip than a s’more, am I right?
It is important to understand that unless specifically named or legally adopted, stepchildren and unmarried partners are not included as a matter of law in a trust or will. Therefore, such changes almost always trigger updates to beneficiary designations.
Family Business and Property Discussions
Some families might have businesses, farms, or other real property (such as a vacation home) that they have included in their plan. Family reunions can bring potential conflicts about future ownership or management to the surface. It’s important to create or reevaluate a business succession plan. There are options for you to place assets strategically inside a trust, LLC, or both! This can provide a smooth ownership transition and also eliminate future arguments amongst relatives.
Encouragement from Other Relatives
Family reunions can be the boost some people need to start the estate planning process. Hearing relatives say things like, “We finally named a guardian for our kids,” or “We put Mom’s assets in a trust to protect them from long-term care costs,” can motivate other family members to take action.
Realizing the Need for Education
Family reunions bring older and younger generations together. This may draw attention to the fact that the youth is uninformed or unprepared. This may prompt honest conversations about financial literacy, debt, and money management skills. Estate planning can provide staggard distributions or parameters for those beneficiaries who may not be ready to manage significant assets on their own (either by way of minority or immaturity). As I always say, “we need to protect them from themselves sometimes!”
In Conclusion
So, what now? The reunion is over. You’ve had way too many hot dogs and came home with mismatched tan lines and some serious decisions to make. We know that estate planning is the proverbial can that everyone kicks down the road. We get it, planning for death and what happens after isn’t exactly an activity that everyone enjoys (we’re the weirdos!) However, when the family reunion is the boost you need to finally take that step or becomes the catalyst for updates to your current plan, we’re here to help you navigate the process.