
Philip GagliardiJune 25, 2015
We have seen this situation a number of times: We receive a phone call from one of our client’s children. Their mother/father (our client) has fallen ill and are no longer able to manage their personal affairs. None of the children know where any of the estate documents are located, nor do they even know the wishes of their parents.
It always seems that parents do not want to burden their children with these types of issues. They seem to think that things will just work out because they took the necessary steps to get the plan in place. They have the will/trust, durable power of attorney and all beneficiary designations are filled out properly. But communicating the family’s investment and tax planning strategy to the next generation is just as important as having the documents prepared.
Through the family meeting, all members can ask questions and reach an appropriate level of understanding so when the time came, they will be ready to help – and not burdened with an extra layer of complexity. Another benefit of the family meeting is to build a relationship between the client’s advisors and family members to ensure the surviving family members are knowledgeable and have peace of mind.
According to an article on EstatePlanning.com, here are a few components and benefits of the Family Meeting:
Some people want to keep their wealth a secret from their children for one reason or another. It is something that should be talked about. It is extremely important to have an open dialog. Both the clients and their loved ones often approach the meeting with a bit of anxiety, but in most cases the experience will have a positive end result. Even when there are controversial issues discussed – for example, if the parents don’t feel that a certain child is financially ready to manage an inheritance – putting that issue out in the open eventually leads to an increased level of understanding.
This article covers the highlights of this subject and should not be construed as estate planning or tax advice. For more information, please contact our office and we would be happy to help (610-651-2777).