The first step in the wealth transfer 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 minimize 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 overview of estate documents with family: A high-level review of your estate plan with the focus on the roles and responsibilities of those involved.
- A closer look at your finances and estate documents: Conduct the basic overview and take it a step further, discussing account balances, the value of all asset and your total net worth.
- A thorough and transparent discussion: Discuss the estate directly, including its financial status and the context and reasoning behind how you intend to distribute your assets.
For each meeting scenario, follow these steps to help ensure you and your loved ones get the maximum benefit from the discussion:
- Before determining your attendees, consider their age, maturity levels and your relationship dynamics. Being inclusive in your choices may create better discussions.
- 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, accessible location for all attendees.
- Involve your financial advisor, attorney or tax advisor in the more detailed meetings.
- Identify actionable next steps and follow up.
Learn more about family discussions about 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 conditions.
Part of a trust: You appoint a trustee to manage and distribute the assets according to the conditions and time frame you 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.
- Evenly: Beneficiaries split assets equally.
- Differently: Beneficiaries split assets according to particular needs or preferences.
Asset distribution may feel complicated, especially if you have two or more children. One child may have a larger family or require more financial support, while the other may be ready to take over the family business. Does it make sense to transfer parts of your wealth according to the needs and interests of each?
Your financial advisor can discuss the nuances of distributing assets and help you find answers that suit your circumstances.
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 trustee's responsibilities is overseeing distributions according to the established timeline. Common distribution types generally occur in one of three ways:
- At age 18 or 21: The trust retains assets until the beneficiary reaches the designated 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 ten years).
- Lifetime: The trust holds assets 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 to use funds.
Your financial advisor and estate attorney can help decide what makes the most sense for your personal situation.