Save The Drama

Estate planners agree that family fighting is the main threat to estate planning. Why? Preexisting family conflict, a lack of communication, and unrealistic expectations are the most common causes of inheritance-related drama. An increase in the number of blended families that include children from prior relationships and in some cases younger spouses may be to blame as well.

So, what can you do now to prevent family tension in the future?  Check out these three tips from the writers at CNBC:

1. Address family conflict directly with your estate plan. Failing to create an estate plan will only add to existing family drama. By creating a clear estate plan, you reduce the potential for disagreement among family members regarding your wishes after you pass away.

2. Inform your family ahead of time. Make sure you thoroughly explain your estate plan to your family members to help them understand not only what to expect, but why certain decisions were made. Emotions run high at the loss of a loved one. Promoting mutual understanding amongst family members and addressing emotions in advance can help make the estate distribution process smoother after you pass.

3. Update your estate plan over time. A change in your family situation should trigger a review and potential update of your estate plan. Beneficiary designations on financial assets should be reviewed to make sure unintended beneficiaries will not receive payouts upon your death. It may be beneficial to review and update your estate plan in response to new tax laws as well.

A little planning today can protect your family from major conflict down the road.