How to Ease Your Kids Into Estate Planning
How
to Ease Your Kids Into Estate Planning
Elizabeth Ayoola Mon, April 24, 2023 NerdWallet
When parents talk with their kids at the dinner table,
estate planning probably doesn’t come up. But considering we aren’t immortal,
it should.
It’s worth having age-appropriate
conversations to introduce children to the idea of estate planning. As children
grow older, parents can provide more specifics about their plans and eventually
assist their children in developing their own plans as adults.
Stay
ahead of the market
Run them through your estate plan
If you have an estate plan in place, consider running your
children through it so they have an idea of what’s included in one. Camelia
Ruffin, an estate planning attorney and founder of The Ruffin Firm in
Douglasville, Georgia, suggests parents do a very basic outline, which includes
telling children what each document is and what it’s used for.
Talking through your estate plan also gives your children
a chance to know important information such as who you’ve chosen as estate
executive or administrator — the person who manages your estate after you die —
and who has power of attorney for financial and health care decisions. If your
children will be executors, that’s more reason to talk them through the plan.
Parents with underage kids may want to share information
about who will take care of them if something happens prematurely. Ruffin says
children should know whom to turn to and what the next steps are so they’re
prepared.
“Parents either get really sick or die and they still have
teenagers who don't know if it's going to be a grandparent, uncle, godparent or
a family friend that's going to help guide them.”
She adds, “It's very important for parents to talk
to kids about money management budgets, what is set aside for them, and how to
make sure money lasts them as long as possible and not to run through it.”
Adult children should know where important estate
documents are such as the original will, trust, power of attorney, health care
directive, and list of accounts and login information.
Estate planning isn’t just financial, it can also be an
emotional affair. Coming to terms with mortality as a child or parent can be
challenging, but remember it’s a way to care for yourself and your loved ones,
says Nataki Appolon, an estate planning and business attorney at Warren &
Warren Appolon in Huntington, New York.
