Careers

Experiences

Industries

Offices

Our Firm

Pages

Our People

Updates

Practices

Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

You have documented your family’s wealth objectives in a purposeful, tax-efficient plan intended to protect assets and mold your beneficiaries into productive adults capable of managing the family’s assets.

contentpilot/introduction

You have ensured assets are properly titled.

core/paragraph

You have prepared a letter to your estate administrators and family members detailing how to access your assets and how to contact your professional advisors if something happens to you.

But have you spent any time communicating to your beneficiaries WHY your estate plan is structured the way it is, WHAT family wealth and legacy means to you, and HOW you expect beneficiaries to operate after you are gone? Communicating your intentions to the next generations is a best practice for successfully sustaining and transferring family wealth. If you haven’t shared any information with your children and grandchildren yet, it may be time to schedule a family meeting for this purpose.

Communicating Your Intentions Promotes Family Harmony

core/heading

It is usually better to share your planning and intentions now then to wait and have your estate plan presented for the first time following your death. Giving beneficiaries the opportunity to ask questions and hear your intentions directly from you can prevent hurt feelings, jealousy or anger after you are gone. A family meeting is an excellent opportunity to bring the family together and to provide answers to the questions your beneficiaries will have, such as:&nbsp;

Why did you leave my money to me in a trust instead of just giving it to me?

core/list-item

Why did you make the sister/brother/aunt/attorney the trustee?

Why can I only receive trust assets for certain uses?

Why do I have to serve as a trustee? Why can’t I serve as trustee?

Why are these particular charitable beneficiaries important to you? Why is philanthropy important to you?

core/list

It may not be necessary to get into specifics about the size of an estate and exactly how much beneficiaries should expect to receive. However, discussing values in broad terms helps to moderate the expectations of your beneficiaries. Without some knowledge, competing interpretations of your intentions and the size of family wealth can create rifts between beneficiaries, which can lead to expensive litigation later as they ask the courts for validation of their interpretations. Furthermore, without understanding your intentions, heirs might view trusts for their benefit as burdens to be dealt with rather than gifts to them of beneficial enjoyment, creditor protection and tax savings. &nbsp;

By holding family meetings now, you can make your intentions and expectations clear. While your beneficiaries may not agree with everything in your plan, they will have the opportunity to hear from you, ask questions and better prepare for the responsibilities that lie ahead.

There is no right way to conduct a family meeting, but you should consider several factors as you design a forum to share your plan. For example, you should consider your beneficiaries’ ages or life stages, how beneficiaries get along with one another and the beneficiaries’ ability to hear and discuss difficult subjects. It may be helpful to have your estate planning attorney on hand (and possibly other professionals, including accountants, investment advisors and independent family succession consultants) to present information and answer questions. A nonfamily member facilitator, such as your Warner attorney or other independent consultant, can keep the discussion on track, share exercises and trainings to foster greater understanding and connection, provide answers to technical legal questions, and ensure everyone’s voice is heard.

Depending on the length of the meeting, the amount of wealth information that will be shared and the ages of the beneficiaries, the meeting agenda might include:

Purposes of trusts, trust terms and uses of trust assets.

Decisions regarding personal representatives, trustees, advisors, etc.

Assets that might make equal distribution problematic (art, collections, family heirlooms, etc.).

Views regarding philanthropy, family legacy, family values and the use of family wealth.

The future of existing investment and philanthropic entities.

Health care, caregiver and end of life wishes.

Succession plans for current employees of the family or family businesses, and plans for their retirement.

Introduction of beneficiaries to attorneys, trustees and other professional advisors.

Topics beneficiaries would like to learn more about to manage their future wealth (use these to create agendas for future family meetings).

Make Sure Your Family Benefits from Your Planning

An important component of your well-thought-out estate and tax plan is communication with beneficiaries. There is great benefit to discussing your planning with beneficiaries during your lifetime, as this creates opportunities to share context, intentions and answers that will better position beneficiaries for the future. Don’t hesitate to contact your Warner attorney or Laura Jeltema (616.752.2161 or&nbsp;<a href="mailto:ljeltema@wnj.com">ljeltema@wnj.com</a>) to help you plan this essential meeting.&nbsp;

Legacy Matters

Private Client and Family Office

Partner

Laura A. Jeltema

Trusts and Estates

Have You Had “The Talk” With Your Kids?  (No, not that one. The one about your estate plan.)

Warner Norcross + Judd LLP is responsible for the contents of our advertising and this website. Please read our full <a href="/privacy-policy/" aria-label="see privacy policy">privacy policy</a> available on our website. If you have any questions or comments about our website or our Privacy Policy please contact us at <a href="mailto:info@wnj.com">info@wnj.com</a> or 616.752.2000. 