Helping Families Understand the Importance of The Emotional and Non-Financial Aspects of Wealth Transfer
Estate planning is both a practical and emotional process. The idea of giving our money away can make us feel uneasy. It evokes various feelings and highlights our relationship with money, our children and ourselves. Nonetheless, in today’s world, the complexities of estate planning require the consideration of many different aspects, such as how to divide up assets between children, give away control, minimize tax liabilities, set up trusts, etc. During this process, the emotional aspects – or the “soft issues” – of estate planning are often pushed aside or overlooked.
Important Aspects to Consider
Prior to starting the process of estate planning, parents should consider the emotional aspects that are associated with it. Doing so will help you choose the right trust structure that will match your needs and your children’s. Questions such as:
- What is the best age to give our children their inheritance without negatively affecting them?
- What are the practical, mental and emotional consequences of our decisions?
- Do we involve our children in the estate planning process? And how do we inform them about our decisions?
- What is best for our children: To distribute the inheritance equally or treat each of them differently based on their personality and life circumstances?
- How to give our children an inheritance without negatively affecting their drive and ambition?
- How do we properly talk with our children about our estate plans and their inheritance and prepare them for wealth and the responsibilities that come with it?
In her work Dr Lami had observed the harmful side of estate planning amongst beneficiaries whom their parents did not consider the subject matters mentioned above. Before you make a decision that could possibly hurt your children, please consult with Dr. Lami on how to best navigate the emotional challenges of estate planning, and ask us about our Estate Planning Workbook.
“Be careful to leave your sons well instructed rather than rich, for the hopes of the instructed are better than the wealth of the ignorant.” – Epictetus