Why You Should Create an Estate Plan This Holiday Season
The holiday season is often associated with family gatherings, laughter, and festivities. However, it’s also the perfect time to address important matters that can sometimes seem like taboo topics for a fireside chat, like estate planning.
Around 70 percent of Americans believe estate planning is important, but only 26 percent have created an estate plan. This highlights a significant gap between intention and action. Despite understanding its importance, many people delay the process, often underestimating how crucial it is to secure their family’s financial future.
While discussing the distribution of assets or future care may not feel like a holiday conversation, it can be an ideal time to tackle it. Spending quality time with your loved ones, gives you a unique opportunity to reflect, plan for the future, and protect your financial legacy.
“Having an estate plan in place isn’t just for the ultra-wealthy; it’s for anyone with assets and a family. It’s about protecting the people you care about and controlling what happens in the future. This holiday season, consider setting aside some time to start—or revisit—your estate planning journey,” advises Scott Ente, Senior Vice President, Investments at David Lerner Associates, Inc.
Reasons to Create an Estate Plan During the Holiday Season
- You Have the Whole Family TogetherThe holidays are a few times during the year when families come together from various parts of the country, or even the world. It’s a rare moment when everyone is in one place, allowing you to have meaningful conversations face-to-face.Having your family together makes it easier to discuss your wishes for the future openly and clearly. You can express your intentions, address concerns, and involve loved ones in decision-making. Estate planning becomes less intimidating when the people surround you will impact most.Additionally, estate planning discussions during family gatherings offer a unique opportunity to ensure everyone is on the same page. This reduces the risk of misunderstandings or future family disputes, giving you and your family peace of mind.
- You Have Time to ReflectThe holiday season is a time for reflection. Evaluating where you are in life and what you want for the future is natural as one year ends and another begins. This mindset lends itself perfectly to estate planning. You can reflect on your current financial situation, assess your goals, and consider how you want your assets handled after you’re gone.Taking the time to think about your estate plan can also lead to better decision-making. Rather than rushing through it during a busy period, the holiday season allows for a more thoughtful approach. Reflect on what matters most to you—ensuring your children are cared for, leaving a charitable legacy, or helping family members with specific financial needs.
- It’s Not as Complicated/Time-Consuming as You May Think Many people delay estate planning because they think it’s too complex or time-consuming. However, the process doesn’t have to be overwhelming. With the help of a professional financial advisor or estate planning attorney, you can create a comprehensive plan relatively quickly.There are tools and resources available today that make estate planning more accessible than ever before. Online document creation, simple estate planning software, and working with an expert can streamline the process. In many cases, the hardest part is getting started—once you do, you’ll find that it’s not as complicated as you might have imagined.
- Choose How Your Assets Are DistributedOne of the most important reasons to create an estate plan is to have control over how your assets are distributed. Without a clear plan, your estate could go through probate, and the court may decide how your assets are divided, which may not align with your wishes.Estate planning allows you to ensure that your assets go where you want them to. Whether you leave a specific amount to a family member, a friend, or a charity, or specify how your heirloom jewelry or treasured belongings are distributed, having an estate plan in place gives you peace of mind knowing that your wishes will be honored.
How to Initiate a Holiday Financial Dialogue
Talking about money, future plans, and inheritances can feel uncomfortable, but the holidays can provide a more relaxed atmosphere to discuss these topics. It’s important to approach the subject with care and sensitivity, focusing on the idea of security and planning, rather than making it sound like a burden.
One way to initiate this conversation is to simply frame it as part of your broader financial planning. For instance, “As we’re heading into the new year, I’ve been thinking more about my financial plans and would like to get our estate in order to ensure everything is clear for the future.”
Emphasizing the importance of preparedness and ensuring your family is protected makes the discussion easier for everyone.
Review Legacy Documents
A well-rounded estate plan includes several important documents.
Each of these plays a vital role in ensuring your wishes are respected:
- A Living Will: Outlines your preferences for medical care if you become incapacitated and unable to communicate.
- A Health Care Directive: Names someone who can make medical decisions on your behalf in the event that you’re unable to do so.
- Financial Power of Attorney: Appoints someone to handle your financial affairs if you’re incapacitated.
- Passwords: Ensure a trusted individual has access to your digital accounts, including banking, social media, and other online services.
- Last Will and Testament: Specifies how your assets will be distributed after your death, names guardians for minor children, and appoints an executor your wishes.
By organizing these documents ahead of time, you’re providing a roadmap for your loved ones, ensuring they can carry out your wishes with clarity and ease.
Tips to Help Ensure That the Estate Planning Conversation Goes Well
To have a productive and positive conversation about estate planning with your family, consider the following tips:
- Be transparent: Let your family know that you’re approaching the subject with everyone’s best interests. It’s not about dwelling on the future but ensuring that everyone is prepared.
- Choose the right moment: Look for a time when the family is gathered in a relaxed setting. Avoid interrupting important holiday moments but aim for a time when everyone is available to talk.
- Get professional guidance: Having an estate planning attorney or financial advisor involved in the process can make everyone feel more confident. They can also help answer any technical questions that may arise during the discussion.
- Frame it as a positive step: Emphasize that estate planning protects the family and prevents any future confusion or conflict.
Conclusion: If Not Now, When?
Estate planning may not be the most exciting item on your holiday to-do list, but it’s one of the most important. The holidays provide an ideal opportunity to start these conversations and take action. By addressing your estate plan now, you ensure that your family is taken care of and your wishes are respected—no matter what the future holds.
At David Lerner Associates, we’re dedicated to helping you protect your legacy and your loved ones. Our experienced advisors are ready to guide you through the estate planning ensuring your financial future is secure.
Contact us today to get started on your estate plan and give yourself peace of mind this holiday season!
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.