What Family Dynamics Can Affect Your Estate Plan?
When it comes to an estate plan, everyone needs one. Unfortunately, as you plan your estate, there may be different family dynamics that complicate your final plan. There are ways to prepare for complex dynamics, however.
Forbes explains how to deal with certain family dynamics while you are planning your estate.
Irresponsible heir are often a consideration when it comes to an estate plan. Do any of your beneficiaries have trouble with money, an addictive personality or perhaps an occupation that opens him or her up to lawsuits. In these situations, you do not want that person to have full control over the money. You can utilize a trust to control his or her spending behavior. It is better to act cautiously than to worry about offending these heirs.
To have sibling rivalries take place is common. This is especially true during times of high emotion and when you involve money. Tension between siblings may start growing. It helps to talk with each sibling in advance. If children know the goals and incentives, they may be less prone to argue.
Blended families can add a complexity to your estate plan. If you have a blended family, you may need to approach the topic more carefully. For instance, you need to acknowledge that there may be assets that are more sentimental to one part of the family. It is important that your family understands why you leave a type of inheritance to one child but not to the other. Transparency can help ease tensions that may happen later.