Finance Step 1: Think about it. (No, really think about it.) First things first: it’s difficult to craft an effective estate plan if you haven’t spent any time considering your legacy, or if you keep putting off writing your will, or if you’re just a little too “uncomfortable” thinking about your eventual demise. To some extent, this is understandable. Like many areas of personal finance, estate planning can be time-consuming and complicated. But unlike, say, investing, it doesn’t really come with an immediate sense of reward or satisfaction. Most professionals will tell you that the will is one of the things which people overlook the most when crafting their estate plan. Sure, most of us know that we have to write a will − but a goodmany of us haven’t really thought about what the purpose andmeaning of that will really is. Is it simply to pass on assets with a minimum of fuss and hassles? Do you have an operating business, and you’d like to ensure its continued viability after you’re gone? Are you looking to make a significant impact on a cause about which you care deeply? Or are you simply looking to ensure that as little of your money goes to Ottawa as possible? Whatever you’re looking to do, it makes sense to spend some time carefully considering what you actually want to accomplish (and why) before you show up at the lawyer’s office to write your will. Even if you have a relatively modest estate, investing the time up front to think about your goals is an investment that will reap significant rewards. Step 2: Have an honest, frank discussion with heirs While you’re doing all of that thinking, it’s a good idea to let your heirs in on your plans. That may be a little bit of a different approach from the one that many of us grew up with − it wasn’t all that long ago that talking about inheritances with children was a bit of a taboo topic. But communication can help ease potential complications (both legal and interpersonal), and can ensure that your wishes will actually be followed when the time comes. Now, there’s nothing to say that such a conversation needs to be a two-way negotiation or joint strategy session − if you want to keep your discussion on a strict “for your information” basis, that can still be quite helpful for heirs. No, not everyone will like what you have to say, of course. But simply letting heirs knowwhat they can expect long before it happens can allow them to get used to the idea, and can go a long way toward defusing family conflict and acrimony (and needless legal headaches). Eight simple steps to an effective estate plan How to avoid estate failure and ensure that your assets go to the people and causes that you want them to Here’s a shocking statistic to ponder: according to U.S. researchers, as many as 70% of estate plans “fail” after passing to the next generation. By “failure,” researchers mean that the estate ends up reducing family assets unnecessarily, or heirs unexpectedly lose control of transferred assets, or the estate is the cause of unnecessary legal hassles, delays or family arguments. Here’s the good news: it doesn’t have to be this way. The fact is, avoiding such estate failures can be as simple as following a few simple steps. With that in mind, here they are: eight simple steps to ensure that your estate plan is as effective as it can be. CSANews | FALL 2021 | 29
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