While how much you divulge about your estate plan is up to you, being open and honest with your loved ones can help alleviate misunderstandings that could arise after your passing. Sharing this information is especially helpful in three instances:
- You have chosen to treat individuals in the same generation differently.
- You have placed additional requirements or restrictions on how your money and property are to be used.
- You have skipped an entire generation or group or individual that would typically inherit from you (spouse, children, or grandchildren).
Also, if you want your estate plan to benefit multiple generations (some of whom may not even be born yet), it can be helpful to have your loved ones understand what money and property they will have access to and your intentions regarding access for future generations. With a clear understanding of your wishes, your loved ones can take the lead in carrying out these wishes after your passing and make the right decisions about the family wealth that will continue your legacy.
Whom you tell about your estate plan does not impact your ability to change your mind. Rather, it is the type of plan you create that will determine the possibility and difficulty of changing that plan. You can amend your last will and testament at any time up until you are incapacitated (unable to make decisions for yourself) or you die.
You can also amend your revocable living trust or a last will and testament at any time prior to incapacity ir death – and under certain circumstances you can even give a third party the authority to amend your trust even after you are incapacitated. On the other hand, there are irrevocable trusts that may be more complicated or problematic to modify in the event you change your mind.
Having an initial conversation with your family about your financial wishes can be nerve-wracking enough; meeting with them a second time to let them know you have changed your mind could be even more so, but it does not diminish the importance or the benefits of being open and honest with them.
In general, I recommend that families hold an annual meeting to discuss the family wealth, just in case a change occurs, or if nothing more, to get together regularly and spend time together.