did you see Inheritance (How could you not?) It’s easy to imagine that handling family money can be dysfunctional at best and downright painful at worst. Wealth planning is a necessary process to deal with losses,Still, decisions involving inheritance planning can cause tension and misunderstanding among loved ones.
I spoke with Associate Counselor Mitch Mitchell. trust and will, to understand how things could go sideways if these issues were not discussed while the parents were still alive. Before it’s too late, here’s what you need to know when discussing family money with your siblings.
offal Clear communication about who will be the executor
Mitchell explains that one brother is typically appointed as the executor, meaning that he will do whatever is written in the will, while the other brother must comply with his wishes. This means that the parents must decide who will be in charge, and prior discussion is required while the parents are alive.. This is not just to prepare the executor for the role, Other brothers are also ready to play their part.
After spending 10 years in estate planning and probate work, Mitchell says there are many negative consequences from the debate about who is in charge. why Whether they are responsible and that responsible person provides all the information they have right away.
So how can we avoid bad blood? Mitchell says it comes from communicating clearly and proactively as early as possible. Let’s see how such a conversation takes place.
How to talk about real estate planning
Mr. Mitchell envisions a scenario in which a mother nominates her middle child as estate administrator, rather than the eldest son. This may be because the child physically lives closest to her parent or because her mother feels she is the most responsible child. It doesn’t matter what her reasoning is. What matters is that it is her property and her decision.
Mitchell’s advice to parents hosting this discussion is to be prepared not only the decision inference That reflected in their decision making. Even if not all family members make the same choices, parents can soften the impact by taking the time to have an open discussion with everyone. Even if your family has avoided “talking about money,” now is the time to address that taboo. To overcome discomfort, Mitchell describes embracing the new idea that this is your family. It’s about my legacy. ”
The main goal is to ensure that all decisions have already been made and fully understood before the property owner dies.. Mitchell’s number one piece of advice is, “Nothing should come as a surprise.” In this way, when the brothers are forced to deal with the administrative side of things, In combat. It’s really just the nitty gritty of accessing your account and following your will. And let’s get a glimpse of what’s included at its core:
- document: Where are your parents’ important financial documents? Are they final? Who can access them?
- health: How do your parents want long-term care? Who makes the end-of-life decisions? Is there money set aside for end-of-life care and funeral expenses?
- Personal property: How is it divided? who will get the house? How are co-owned assets managed?
- responsibility: Who can help liquidate property? Will some brothers have more responsibilities than others?
- Inheritance: How will inherited funds be distributed? Are the funds held in a bank or brokerage firm?
- debt: Are your parents heavily in debt? Will the debt be passed on to one or more siblings?
Conclusion
Early communication is key to avoiding long-running, irrelevant quarrels. “When someone is disappointed, hurt feelings are inevitable,” he says.However, there is no need to develop a full-fledged dispute in probate court. ”
And most importantly, what were Mitchell and other real estate lawyers thinking? InheritanceApparently it was “perfectly symbolic” of all of the family problems faced when a major figure in the patriarchy died. The idea that “it is unfair” spreads among people, Siblings do not disappear with age. You can make difficult conversations a little easier by confiding in them now, before it’s too late.
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