Personal and family values are key components of estate planning.
Many Americans have a fairly reductionistic view of estate planning.
How so?
They mistakenly believe the sole purpose is to address financial matters.
Although estate planning certainly benefits individuals through the use of last wills, all manner of trusts, and tax-efficient transfer strategies, it can also benefit families through the promotion of values.
Because a legacy is more than the assets left behind, individuals should incorporate their priorities and beliefs into their estate plans.
Passing personal and family values to future generations is a key component of estate planning.
Through comprehensive estate planning, you can craft a plan aligned with values-driven goals.
Regardless of whether the foundation of your estate plan is a last will and testament or a trust, you can add provisions for charitable giving or outline instructions for the use of inherited funds.
Although they do not have the same legal authority as last wills or trusts, letters of intent or “ethical wills” can be used to share family history, life lessons, and personal philosophies with the next generation.
Minor children often require a greater level of support and protection.
If something were to happen to both parents, they would be left orphaned.
By nominating guardians with similarly aligned morals and lifestyles, parents can help ensure their children are reared according to the same values.
Poor communication has been the bane of many relationships.
Misunderstandings can be hurtful and lasting.
Discussing your estate planning choices with your loved ones before you die can help them to understand and uphold rather than fight your wishes.
Before you can communicate your estate planning wishes and how they align with your goals, you must first determine the values you wish to promote.
Estate planning based on values requires individuals to identify what they most prioritize.
What values might shape your estate plan?
Some people desire to promote a certain cause or give to charity.
Others want their children and grandchildren to have guidance for wisely handling their inheritances.
An experienced estate planning attorney can help you integrate these into your estate plan with letters of instruction, trusts, charitable giving tools, or other estate planning instruments.
The importance of communication cannot be overstated.
Beneficiaries can easily misinterpret your wishes and motives.
An ethical will or statement of purpose can allow you to record your reasoning.
Even if you have shared about your estate planning goals verbally, having a written record can serve as a helpful reminder.
What are examples of how estate planning instruments can be used to reinforce values?
Charitable remainder trusts can both provide income for surviving loved ones and support a beloved nonprofit.
Education trusts can earmark funds for academic purposes.
Incentive trusts can promote mature and responsible behavior.
Utilizing trusts in estate planning is an effective way of promoting your personal and family values for generations.
Prioritizing and communicating your values in your estate planning can help sustain your legacy.
When loved ones understand the purpose behind your wishes, misunderstandings, hurt feelings, and estate battles can be avoided.
If you do not have an estate plan or your current plan does not align with your values, you can request a consultation with our estate planning law firm in Overland Park, Kansas.
Before you begin creating your estate plan, you should decide what values will guide your decisions.
All estate planning instruments should be aligned with and support your stated principles and goals.
You can structure gifts to promote positive behaviors and discourage negative ones.
Including an ethical will or letter of instruction with your comprehensive plan to communicate the reasons for your wishes can deter possible estate battles or other family disputes.
An experienced estate planning attorney can help you navigate estate planning based on your principles.
This post is for informational purposes only and does not provide legal advice. You should consult an attorney for advice on any specific issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: Kiplinger (June 27, 2023) “In Estate Planning, Your Values Can Play a Key Role”
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