Once you prepare your estate plan and select an executor you can trust, it’s wise to discuss your Will with your heirs. Discussing your intentions for their inheritance may feel like a sensitive subject but it’s better to talk about it before you pass away than risk their confusion and hurt feelings after you’re gone.
Discuss Your Will With Family & Beneficiaries
Review your Last Will & Testament with your heirs and be upfront about your intentions for their inheritance. Help them understand why and how you’re transferring specific assets to certain family members and friends and be prepared to answer any questions.
If your Will doesn’t specify your wishes for your burial services, put it in a “letter of intent” and discuss your preferences with family. Make sure everyone understands the responsibilities of your executor include accounting for all the assets in your Will, plus having them appraised for value and distributed to the heirs you’ve named.
“Assets that fall outside of probate are those that require naming a beneficiary.”
Discuss Assets That Fall Outside Of Probate
Keep in mind that a Will only covers assets and property subject to probate court. Assets that fall outside of probate are those that require naming a beneficiary. These can include savings accounts, 401(k)s, life insurance, and federal programs that pay a death benefit to your named beneficiary:
- The Thrift Savings Plan (TSP)
- Federal Employee’s Group Life Insurance (FEGLI)
- Lump sum payments from CSRS or FERS
- Unpaid compensation including any unpaid annual leave
Discuss these assets with your designated beneficiaries and make sure they have the information they’ll need after you pass away.
Other Estate Documents To Review With Family
A comprehensive estate plan includes documents that communicate your wishes when you’re not able to make decisions for yourself. If you haven’t included them in your estate plan, do so as soon as possible. Once completed, review them with your family:
- Durable Power of Attorney (DPOA): enables yourselected agent to make decisions about your finances and sign documents on your behalf.
- A Living Will: describes your wishes for healthcare treatment and end-of-life care.
- Durable Power of Attorney for Health Care names the person you’ve chosen to make health care decisions for you. Also known as Medical Power of Attorney, Health Care Power of Attorney, Designation of Health Care Surrogate, or Health Care Proxy.
- Advance Directive: combines a Living Will and Power of Attorney for Healthcare.
To ensure you have the documents you need for a comprehensive estate plan, connect with an FRC® trained advisor who can help get you started.
