Preparing Your Heirs for Their Inheritance
The Art of Open Conversation
Once you’ve established and reviewed your estate plan with your advisor, it’s time to share your intentions with your heirs. Talking with your family about wealth may be difficult, but these conversations can give your loved ones peace of mind that they will be cared for. Below are six strategies you can use to facilitate productive, family-wide discussions around your estate plan:
Decide on Ground Rules – Together
As the initiator of these family meetings, your family is likely looking to you to lead these conversations. Open, candid discussions are key: Consider establishing a no-technology rule, and make it clear upfront that everyone should have a chance to speak their mind. With these ground rules, all family members can feel they’re in a safe environment where they can give their opinion without judgment.
Acknowledge the Awkwardness and Address Communication Styles
It’s no secret that the topic of inheritances isn’t an easy one – so be upfront about it and tackle it as a team. And remember that communication styles will differ – some members of your family might have the loudest voice in the room, while others might need some encouragement. It’s also important to recognize generational gaps that may show up in conversation. Heirs who are part of Generation X grew up in a different economic environment than did millennials or Gen Z. While the advice and information you give may not change, consider how your messaging can come across.
Share Your Feelings
To model the behavior you’re looking to foster, be candid and honest. While sharing how you feel may risk a disruption to the status quo, it’s important to keep in mind the long-term goals of these potentially difficult conversations. Of course you’ll want to maintain the family peace – but your desire for harmony shouldn’t be a reason to put a superficial filter over these challenging conversations. Share what being a good steward of family wealth means to you and the legacy you hope to pass down throughout your family tree.
Remain Aware of Your Outward Reactions
You’re not going to agree with everything that is said throughout your meetings – and that’s okay. To encourage everyone to contribute openly and honestly, it’s vital that you stay aware of how you react to things that are said – sometimes even body language is enough to shut down communication.
Describe Your Legacy Through Storytelling
Encourage your older family members to talk through their experiences with younger ones. By sharing the personal stories and accomplishments you’re proud of and the setbacks you’ve learned from, the entire family can understand the story behind their legacy – and hopefully gain a new appreciation for the values that formed from it.
Share Your Estate Planning Documents
At some point during these conversations, make sure your family knows where and how to access your estate planning documents. By doing this, you’re taking away the added stress and worry that could come with an already challenging time that occurs when a family member passes away.
If you feel you’re ready to start having these conversations with your family, let your Baird Financial Advisor know. As a resource who understands your family’s finances and values, they can help you create a specific plan for addressing your legacy with your heirs.
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