When it comes to estate planning, one of the most important things you can do is have an estate plan. While that may seem obvious enough, in addition to having an estate plan, communicating with those impacted by your estate plan is a crucial step as well.
But what if you do not communicate with your loved ones about your estate plan? Doing so can lead to a host of consequences, detailed further below.
What Are the Consequences of Not Communicating About Your Estate Plan with Your Loved Ones?
Lack of communication in regard to your estate plan can be very damaging to the estate planning process as a whole.
Here are some of the consequences of not properly informing your loved ones about your estate plan, followed by further analysis of each:
- Your loved ones do not know what documents exist
- Your loved ones do not know where your documents are kept
- Your beneficiaries are unknown
- Your loved ones may have disagreements over assets
- Your blended family is confused about what roles everyone plays
- Your family does not know how much wealth you have
Your loved ones do not know what documents exist
This may seem particularly basic, but if you do not inform your loved ones about your estate plan, they’ll have no idea you even have one. Beyond that, your loved ones will have no idea what specific documents do exist, such as your will, any trusts you have created, your power of attorney documents and more.
Your loved ones do not know where your documents are kept
Another consequence of not telling your family about your estate plan is that even if they have some idea that you have an estate plan, they’ll have no idea where you keep the documents. Should you pass away, this can lead to significant complication when the time comes to distribute your assets.
Your beneficiaries are unknown
If your loved ones don’t know about your estate plan, none of them will be aware of who your beneficiaries are – leading to significant confusion.
Your loved ones may have disagreements over assets
Perhaps your beneficiaries have differing opinions on what to do with certain assets they stand to receive. If this is the case, clearly communicating intentions can solve any confusion that exists or any tension that may arise from lack of communication.
Your blended family is confused about what roles everyone plays
If you were previously married and your children from your previous marriage are beneficiaries, or someone is even the executor of your estate, they will need to know that.
Your family does not know how much wealth you have
If your family does not know the extent of your wealth, it can lead to unwelcome surprises upon your passing. For example, if you have more wealth than your family knows about, they may have difficulty managing it after your death. On the other hand, if you have less wealth than thought, it can negatively impact any plans your beneficiaries had in place.
For any questions regarding the creation of or updating your estate plan, or any of your other estate planning needs, we are here to help. Contact us today to learn more about how we can work with you.
For more information regarding various estate planning and elder law topics, view our resources page, where you will be able to find previous blog articles, newsletters and our informative webinar series.
