The first step in the process is setting time with your family to discuss the details of your estate, including the "why" behind your decisions. These meetings can serve to mitigate conflict, reinforce your values and support stronger relationships.
Discussing the full scope of your estate plan may be too much for one meeting, so we suggest breaking it into several conversations, each with its own agenda.
- Basic family meeting: Overview of estate documents - A high-level review of your estate plan with the focus on the roles and responsibilities of those involved.
- A closer look: Finances and estate documents - The estate plan overview, as well as a high-level financial discussion — including account balances, assets and their value, and total net worth.
- A deep dive: Complete transparency discussion - The estate and financial discussions, as well as how you'll distribute assets. If you're not dividing assets equally, provide context and reasoning.
Whichever scenario you choose, follow these steps to help ensure you and your loved ones get the maximum benefit from the discussion:
- Determine your attendees, taking into account age, maturity and relationship, and try to be inclusive.
- Plan the meeting and clarify expectations for attendance.
- Develop and finalize the agenda with key discussion points and intended outcomes.
- Host the meeting in a neutral location that's desirable for all attendees.
- For the deeper discussions, involve your financial advisor, attorney or tax advisor.
- Follow up and identify actionable next steps.
Learn more about family discussions concerning your estate.
Here are two common ways to give your assets to your beneficiaries:
Outright gift: In this scenario, your beneficiaries receive the assets in full with no strings attached.
Part of a trust: A trustee is appointed to manage and distribute the assets according to the conditions and time frame identified in the trust.
Learn more about transferring assets to heirs.
Whether you choose the outright gift or trust option, you may need to ensure your assets are distributed according to your wishes. You can split assets equally or based on certain criteria, such as the needs of the beneficiary.
- Equally: Assets are split equally among beneficiaries
- Differently: Assets are split according to particular needs or preferences
If you have two children, should your assets be split down the middle? Or does it make sense to transfer parts of your estate according to the needs and interests of each? For example, a child with a larger family of their own may need more financial resources, while the other may be interested in taking over the family business.
Your financial advisor can discuss the nuances of different ways of distributing assets.
The trustee is responsible for managing the trust assets and following the rules of the trust according to how and when assets are to be distributed. Some choose a family member to serve in this role, and others may choose a professional advisor, such as an attorney, or a corporate fiduciary as their trustee.
Learn how Edward Jones Trust Company can help.
One of the responsibilities of the trustee is to oversee distributions according to the timeline. These common distribution types generally occur in one of three ways.
- At age 18 or 21: Assets are kept in the trust until the beneficiary reaches this age. Then, the beneficiary receives full control of the assets without further restrictions.
- Phased-in distributions: Distributions are phased in at certain ages (e.g., 35, 40) or after a certain number of years (e.g., a third immediately, a half after five years and the remainder after 10).
- Lifetime: Assets are held in trust throughout the beneficiary's lifetime, allowing the funds to grow over a longer period. Beneficiaries are not granted unfettered access to assets and often must request use of the funds.
Your financial advisor and estate attorney can help decide what makes the most sense for your personal situation.
Learn more about trusts and trustees.
