Naming heirs is a critical aspect of planning your estate. When you formally name people in your legal documents, you can control who receives your assets.
Should your heirs know about your plan? Are there aspects of your strategy that you should share with them? Knowing what to speak with them about can boost your confidence and help you avoid an oversight.
Estate planning is a personal decision and one that involves the intersection of confidential information from various parts of your life. You certainly do not need to disclose every detail to your heirs. However, providing a description of your strategy and the intentions behind your decision can improve understanding.
If you wonder how much information to share, CNBC suggests relying on your intuition and examining your family dynamics. Consider which information your heirs would benefit from knowing, but refrain from overexplaining or divulging sensitive details that might not apply to them.
Your heirs will appreciate knowing their role in your plan. Providing this information can help them plan ahead, as well as give them some context to the whole situation. You can also describe how their involvement in your plan may require them to collaborate with other plan participants, as well as what that will look like.
Inheritance disputes can cause significant problems when it comes time to close your estate. Providing as much understanding as you can while you are still living, as well as encouraging your heirs to have compassion for each other may increase unity and lower the risks of tension.
Considering how big of a role your heirs play in your plan, it only makes sense to keep them informed about your intentions. You will also want to update them on any notable changes to your plan.