Many people have no idea what is in their parent’s estate plan until they pass and they get to read it. Renowned investor Warren Buffet thinks this is a mistake.
Here is why he believes parents should share their estate plans with their children before they even sign them:
1. To head off problems
Put yourself in the position of a child whose parent is making an estate plan for a moment. Imagine finding out that your parent had left your sibling more than you. Or that they had hardly left either of you anything, and had given most of their wealth to charity. You might feel confused or hurt. You might wonder if someone manipulated your parent into making those decisions.
If, however, your parent had outlined their plans while they were still alive, you could have asked questions to clarify their motives. If you disagreed or thought they had misunderstood something, you could have explained your point of view to them. Whether they altered their plan or not, the plan would not have come as a shock when they died and there is less chance you might want to contest it.
2. To understand peoples’ preferences and needs
Imagine your parent tells you they want to give you medical power of attorney, but you feel your sister would handle that duty much better and she has always assumed your parents would pick her for the role. It’s much simpler to swap things around in the draft estate plan than it is for you and your sister to swap things around after your parent dies.
Hopefully, stepping into the position of your child for a moment has helped you see how beneficial it might be for you to run your estate plan by them first. It’s not obligatory, but it is definitely something worth considering, even though your assets are likely worth less than that of Mr Buffet.