We have recently found an article on CNBC talking about the biggest issue with Estate Planning.
When it comes to passing on wealth to heirs, family dynamics can be the biggest obstacle.
Indeed, nearly 8 out of 10 financial advisers polled by Key Private Bank said that navigating tricky familial relationships is the most difficult part of estate planning.
The bank surveyed about 130 of its own advisers online in December 2018.
“The sensitivities of talking about estate planning often present emotional hurdles to putting a plan in place — especially when multiple marriages and blended families are involved,” said Karen Arth, head of trust with Key Private Bank, in a statement.
As blended families become the norm, “the issues of equitable distributions among family members become even more complex,” Arth said.
Indeed, the interaction between parents, children, step-parents and step-children can be fraught with tension during the estate-planning process.
This is especially the case when a plan is put into action after a parent or step-parent’s death or disability.
But while your family’s drama may be getting in the way, there is you can do something about it.
More than 80 percent of the advisers polled said that few of their clients are “having open conversations about estate plans and wishes with their families.”
“Some clients may be hesitant to have a conversation about estate planning with their family members because they fear that sharing their wishes will cause conflict,” said Andrea M. Griffiths, national manager of Trust Settlement Administration at Key Private Bank, in a statement.
Talking through your goals and how you’d like to share your wealth with your heirs is only part of the story.
You also have to update your documents to reflect your wishes.