Essential Considerations in Estate Planning
A guide for smooth transitions
We spend a lot of time with individuals, couples, and families on wealth preservation and transfer — estate planning — and while it’s important that you work with an attorney and tax professional for the legal and tax-related aspects of the process, there are also non-legal, non-monetary aspects that may be just as important to consider.
For anyone exploring or engaged in the process, we’ve found that integrating the softer skills of estate planning, including clear communications and emotionally intelligent planning, can ensure a smoother transition and preserve family harmony.
Whether you’ve already finalized an estate plan or are just getting started, here are four aspects to consider when creating your plan.
Plan for the future, but don't forget the here and now
Focusing on the present while preparing for the future is crucial. Life is unpredictable, and circumstances can change rapidly. A well-crafted estate plan should be revisited every two to three years or whenever significant changes occur in the family, such as births, marriages, divorces, or shifts in financial status.
For business owners, this means not only considering the succession of the business but also ensuring that your current needs and your family's needs are met. Regularly updating your estate plan provides a roadmap that adapts to changing circumstances, reducing the risk of disputes and confusion among heirs.
Communication is key
Every family takes a unique approach to discussing money, preservation, and wealth transfer. Transparent communication is essential for successful estate planning. Spouses, children, and grandchildren should understand the thought process behind the plan.
Open discussions about your estate plan can help demystify your intentions and reduce misunderstandings. Families who frequently converse about plans tend to experience smoother wealth transfers. When everyone understands the plan, there's less room for disputes, especially during emotionally charged times.
Surround yourself with good people
A thoughtful, well-designed plan is a priceless gift to your family, but it requires the right team of professionals. Lawyers, CPAs, insurance professionals, trust officers, and bankers play crucial roles in estate planning. It's important to choose partners who work well with you and your family.
Consider whether these professionals will be the right fit for your surviving spouse or children. If you feel comfortable, introduce your family to your trusted advisors. This can help build a relationship that will continue after you're gone. A good partner understands the importance of getting to know the rest of the family and should be eager to meet with your children and grandchildren.
Plan for unique personal property
It's easy to focus on financial assets and overlook personal items that hold sentimental value. Though seemingly insignificant, these items can carry deep emotional significance for family members. The desk nameplate, the cookie jar, or the watch can all become sources of contention if not properly addressed.
Discuss these items with your family to understand their sentimental value. If multiple family members express interest in the same item, make a decision during your lifetime to avoid conflicts later. Allocating these personal items thoughtfully can help prevent rifts that often arise from emotional attachments to seemingly minor possessions.
The softer side of estate planning concerns more than legal documents and financial arrangements. It's about ensuring that your family's emotional needs are met and that your legacy is preserved in a way that promotes harmony and understanding.
At Country Club Trust, we've been honored to provide strategic financial guidance and estate planning services to generations, witnessing firsthand the advantages of careful planning and smooth transitions. We're ready to share this expertise and welcome the opportunity to help you achieve your financial goals and objectives, now and in the future.
— M. Suzanne (Suzy) Hall, J.D., President, Country Club Trust Company — A Division of Country Club Bank
The opinions and views expressed herein are those of the author and do not necessarily reflect those of Country Club Trust Company (CCTC), a division of Country Club Bank. Information provided including any estate planning or tax-related information does not constitute legal or tax advice; is for illustrative and discussion purposes only; should not be considered a recommendation; and is subject to change. CCTC does not provide legal or tax advice. For legal advice, including the drafting and execution of estate planning documents, and/or tax advice, the services of a competent professional person or professional organization should be sought.