Do you have a plan for which members of your family and other people may receive assets from your estate? Have you documented these wishes and talked it over with the beneficiaries who may receive them?
Don’t forget the possibility that these assets may change in value or shift as your life calls you to re-evaluate your plans based on health issues.
A recent study found that 71% of people who anticipate receiving an inheritance expect it will be from their parents or guardians, and 21% believe they will receive assets from a spouse. Many people expect things like cash, properties such as a house, bonds and stocks, proceeds from a life insurance policy, jewelry, annuities or family heirlooms.
As a person who has established an estate plan for the future of your assets, you may need to be careful around the conversations you have with your adult children around what they can expect. Future life events such as an unexpected healthcare crisis may call into question the value of your assets. This may deplete what a loved one is expecting to receive.
In these situations, it can be helpful to have honest and upfront conversations with those anticipating the receipt of assets. You cannot predict the future and many people anticipate and want to give as much as possible to their future heirs without recognizing the possibility of an illness or injury later on. You may need to turn to those assets you had earmarked for a loved one to care for yourself or your spouse, and it can be dangerous for loved ones to anticipate receiving these assets if you are not able to pass them on or if they don’t recognize the potential risk of asset reduction.
Need more help? Talk to our Pasadena estate planning attorneys now.