Family Meetings

Tuesday, May 17, 2011

NEET Tips

NEET Tips answers questions posed by visitors to the NEET website

What should be on the agenda for an estate planning family meeting?

The circumstances surrounding the family meeting often drive the agenda. Most family meetings include having the attorney provide the children a general overview of their parent’s estate plan, including how the plan is designed to work, and how the children will inherit, e.g. either in trust or outright. If the children are inheriting in trust, which is increasingly common, the children need to be advised of the benefits of this approach, and the importance of leaving assets in trust for as long as reasonably possible. A similar discussion is usually held regarding IRA assets and how they will pass. Successor trustees and other fiduciaries should also be informed of their future role, what will be expected of them, and how they can access help when they have questions.

One of the primary purposes of a family meeting is to avoid surprises later, so that children can understand what their parents did in their estate plan, and why they did it that way. Family meetings are not appropriate for all families, but when possible, they can head off disputes later that invariably become costly and cause needless divisions among siblings.

For more information on family meetings, see the NEET article:

A Family Meeting to Discuss Your Estate Plan

Tuesday, February 08, 2011

NEET Tips

NEET Tips answers questions posed online to the NEET website

What are some good ways to begin discussing my parent’s estate planning?

There are three common approaches to raising the issue of estate planning with elderly parents. One method is to discuss what happened to a family friend or neighbor who recently died, particularly if the lack of estate planning caused family problems. You and your parents can learn from their mistakes. Another method is to begin your own estate planning and mention to your parents what you have learned. You can also state that your attorney wants to know how your parents estate planning is set up so that your attorney can plan accordingly. The final method is to suggest your parents get organized, first with getting important paperwork in order, then addressing incapacity issues with an Advance Directive, a power of attorney for finances and a HIPAA release. Once your parents complete those documents, the next natural step is drafting a will or trust. Be aware that patience is important, and recognize that as the elderly get older, one of their biggest fears is losing control, so attempting to micro-manage the process could backfire. It’s never an easy conversation, but it will undoubtedly benefit everyone.

For more information on talking to your parents about estate planning, see the NEET article:

Talking to Your Parents About Estate Planning

Friday, November 12, 2010

Press Coverage of Estate Planning this Week (November 12, 2010)

Teresa McUsic writes in the Star-Telegram (Dallas) about how the holidays are an opportune time to discuss finances with elderly parents, many of whom appreciate assistance with finances from people they know and trust. Questions to consider include: who is the parent’s advisor, where are their assets invested, and is the advisor willing to have the client’s children take part in financial discussions and decision-making? McUsic lists other questions that you may want to address. See Holiday Can Be An Ideal Time To Talk to Your Parents About Their Finances (Nov. 11, 2010).

Asher Rubinstein of Forbes reviews estate planning strategies to consider before the end of 2010. His list includes considering a dynasty trust or a Charitable Remainder Trusts (CRT), and making gifts while gift tax rates are historically low. See Estate Planning Moves To Consider Before 2010 is Done (Nov. 10, 2010).

Paul Sullivan of the New York Times reviews the basics of special needs trusts, which are designed to protect the inheritance of a disabled person who is receiving, or expected to receive, government assistance for basic living expenses. One primary challenge, Sullivan states, is administering them correctly, because money cannot go directly to the disabled person, and cannot be spent on certain living expenses. See Exploring Trusts For The Disabled (Nov. 5, 2010).

Friday, March 05, 2010

Press Coverage of Estate Planning this Week (Mar. 5, 2010)

Deborah L. Jacobs of the New York Times writes about the advantages of parents discussing their estate plan with their children, including being able to head off disagreements among children, and even some surprises about children wanting less than the parents intended to give them. See Estate Planning as a Family Conversation (Mar. 3, 2010).

Ashlea Ebeling of Forbes highlights a recent survey finding that more than half of Americans do not have any estate planning in place, and discusses some of the reasons people give for not planning ahead. See Americans Lack Basic Estate Plans (Mar. 1, 2010).

Nolan Baker and Mark Clair write in the Toledo Free Press about the differences between wills and trusts, and what factors go into choosing one approach over the other. See A Will? Or a Trust? (Mar. 5, 2010).

Friday, November 06, 2009

Press Coverage of Estate Planning This Week (November 6, 2009)

Lisa Munniksma of Successful Farming discusses some approaches for handling a family meeting focused on estate planning. Having a strategy for communication before the discussion and listening to find out the concerns and interests of other family members often leads to better outcomes. See Taking Emotions Out of Estate Planning (Nov. 3, 2009).

Rebecca Price, Esq., writes in the Lakewood Observer (Lakewood,Ohio) about the need for young families to engage in estate planning. She cites naming a guardian for your children and determining who receives the family assets (without leaving out children from a prior marriage). See Estate Planning for Young Families: The Job You Don’t Want to Do But Must Get Done! (Nov. 4, 2009).

Bill Bischoff of SmartMoney reviews what you should do, and some of the options you will face, regarding taxes related to a loved one’s final medical bills. See Handling a Loved One’s Final Medical Expenses (Nov. 5, 2009).