Discussing Your Estate Plan with Loved Ones this Holiday Season

December 2, 2022
Danielle Pierce

It’s hard to believe, but as 2022 draws to a close, we already have two holiday seasons during a pandemic under our belt, with a third quickly approaching. These last few years have been strange, to say the least. But throughout these strange times, we still come together during the holidays to celebrate life and enjoy time together as a family. As we approach the new year, this is the perfect time to discuss some very important topics and implement the practical necessities of your estate plan.

Communicate Your Estate Plan

Along with drafting a comprehensive estate plan, it is critical that you have communicated your intentions to those persons who will represent and carry out your decisions when the time comes. They are usually family members or friends that you have chosen to be your executor, agent, trustee, or healthcare power of attorney. You have chosen these individuals out of trust and loyalty. Though it may feel weird to talk about it, you never want to leave your wishes (or nominations) a secret from those you have entrusted. From a survivor’s perspective, if they have no prior knowledge of the intricacies of your plans, it leaves room for confusion, disputes, and dysfunction, including potential courtroom litigation.

Every client that I meet with desires to have their family, especially their children, refrain from fighting after they have passed. When tragedy strikes, your family would rather have known your wishes up front, expressed in person, rather than reading it from a piece of paper. Many times, your decision to select one child over the other may have the unintended effect of hurting the feelings of the children you didn’t entrust with handling your affairs. Because of this, you may wish to explain your choices to your children, which will also help prevent disputes and hard feelings later on.

Explain Each Person’s Role

There are many reasons why you may have selected the people you did for the roles they have in your estate plan. For example, perhaps you named your daughter as healthcare POA because she’s a nurse. Perhaps you named your brother as executor and/or trustee because you don’t want to show favoritism among your children. Whatever the reasons may be, it’s helpful to explain the role these individuals have because they may not want or understand the work, time, and responsibility involved. Should the people you’ve chosen not be willing to take on the responsibility of the role you’ve assigned them, having this frank conversation will allow you time to redesign your estate plan to put a new agent in place.

Helpful Tip: Focus on Who is Best Suited to Carry Out the Duties of Each Role

Parents often make the mistake of trying to create an estate plan that will make everything equal between their children — with each sharing in the “honor” of having equal responsibilities. If you have multiple children, focus instead on which child would be the best fit for each job. Other children can be alternate or successor agents, serving only if your primary agent is not able or unwilling to serve. Don’t make the mistake of naming one child as a healthcare agent because you want to be “fair” without considering whether they will be capable of making hard decisions about your medical care when you are unable to do so for yourself.

Create and Share an Account Summary

According to Forbes, there’s more than $49 billion sitting in unclaimed funds. These are funds that people haven’t claimed because family members and heirs don’t know the money exists. With so much of our commerce taking place in the digital world these days, it’s not surprising that heirs have zero knowledge of the accounts you own. If you would like your family to receive your estate instead of the government, I strongly urge you to create a comprehensive account summary that lists all of your assets. Update this list anytime you open or close new accounts, and share this list with your estate plan agents, such as your trustee, executor, and financial power of attorney. You do not need to include values for these accounts; simply knowing they exist will be enough. Your account summary should include the following information:

Name of Institution (U.S. Citizen’s Bank, for example)
The Owner of the Account (Jane Smith or the Smith Family Trust, for example)
Account Number
Beneficiary (if any are named)

Be sure to share this summary with those involved in administering your estate.

Storing Estate Plan Documents in the Right Place

Never, and I mean never, should you store your documents in a safety deposit box. If your executor is not a joint account holder on the box, then they will have to go through probate to gain access to the box. Moreover, if your healthcare POA or other agents need quick access to your estate planning documents (such as your healthcare directives or financial POA), they may not have access because banks are not open 24/7. A better option is storing your documents in a file cabinet or other safe place that is easy for your agents to access. This can also include a fireproof safe in your home, as long as your agents can get into the safe without your help. Most importantly, be sure to let your agents know where your estate planning documents are stored.

Helpful Hint: Upload Healthcare Directives for Quick Digital Access

Upload your healthcare POA, living will, and HIPPA authorization with your primary care physician so they always have it on file. The Cleveland Clinic allows you to upload these healthcare directives through MyChart. If you’re not savvy with computers, then simply take a copy of these items to your next doctor’s visit for them to keep on file.

Maintenance of Your Estate Plan

According to the US Census, the average American moves more than 9 times in their life. Multiply that by the number of interested parties you have in your estate plan, and it’s easy to see that your plan will need to be updated often. Changing an address or phone number is an easy task and one that doesn’t cost much, if any, to achieve. When you meet with your family during this holiday season, check to confirm that your plan reflects your agents’ current contact information (address and phone number). Also, be sure to update your estate planning attorney with any changes that need to be made to keep your documents current.

Attorney Danielle Pierce, smiling at camera At Pierce Legal, we get to know each of our clients, gaining a meaningful understanding of and relationship with you that allows us to create a thorough estate planning strategy that will satisfy all of your planning goals and needs. Our practice provides professional legal advice and guidance focused in the areas of asset protection through proper estate planning, business services, and real estate assistance. Contact us today to schedule a consultation at (330) 588-6115.