Should you talk to your adult children about their INHERITANCE?

specifics so that if you have to spend some of the inheritance on your own expenses, the decrease won’t be a letdown.

The type of things you should discuss with your adult children are your values, the opportunities money can provide, and what you want to accomplish with it. You may even want to consider an annual gifting program so your children get a chance to try out an “inheritance” and you get to see how they spend it.

Another reason to discuss your estate plan is to address who is going to be in charge of your estate after you die. Just appointing the oldest child may not be the best plan as you want it to be someone who can remain neutral and manage financial matters. Being an executor or trustee can be a thankless job and starting with the right person can make it easier.

Another issue to discuss is whether you are equally leaving your assets to your children. There may be some very valid reasons not to do so but by not explaining your reasoning while you are alive, you may be setting up the family for hurt feelings or even a will contest.

Tax planning can lead to discussions about your estate as most people want to transfer their wealth with as little tax as possible. If you have a large retirement account, income taxes will have to be paid on that account transfer and it may be that it’s advisable for you to pay the taxes as you are in a lower tax bracket than your children.

It may be advisable to discuss your estate plan with your children in the presence of your legal adviser. They may be better equipped to answer questions that your children may have. D

Attorney Yvonne Michaud Novak is a member of the American Academy of Estate Planning Attorneys, an exclusive national organization. She opened her own law office in 2007 after a varied career which included nursing home administration, estate planning and business paralegal, and work as a certified financial planner.