Regular Family? Have The Talk

Just because you’re not “Warren Buffett” level (most families are not), doesn’t mean you shouldn’t have “the talk.” As in: have a discussion about assets—and much more. Though the phrase “we should talk,” might send some “ick and uh-oh” around the family circle, open and plain spoken conversation about plans for the future (and the unexpected) is the best way to shield loved ones from unnecessary stress, confusion and conflict. What about the home? What’s the caregiving plan in the event of capacity declines? Who is authorized to handle financial matters? Who is the healthcare proxy? Read on for practical advice about what every family needs to be periodically discussing.

Clarity and Preparedness Are Gifts 

There are plenty of movie scenes where families gather for the “reveal” about assets after a death. Signing ceremonies are popular too. But in real life, the gathering and talking should happen long before a death, and the circumstances surrounding assets upon death should not come as a surprise to anyone. An organized and productive family meeting, according to attorneys at the law offices of Davis Schilken, “is not a will reading, signing ceremony, or negotiation session. At its best, it is a structured conversation about intentions, responsibilities, and expectations.” Noting that “A meeting with no agenda can quickly turn into a chaotic free-for-all,” DS Law advises carefully thinking through the context and agenda, based on family circumstances. Experienced estate planners can assist with laying out who should attend, and the agenda items to be discussed. One gift of proactive estate planning conversations with family is the opportunity to provide clarity about not just “what,” but “why,” as you explain:

• The goals of your estate plan
• Why you assigned certain people to specific roles
• Whether distributions are equal or unequal—and why
• Any charitable or legacy intentions
• When family members understand the logic behind your decisions, they are less likely to fill in gaps with suspicion, confusion, or false assumptions.

What’s In A Complete Estate Plan?

Ideally, an estate plan encompasses tools that address assets and arrangements for your own care in the event of a capacity decline or other unexpected circumstances during your lifetime, as well as plans for assets upon your death. Attorneys at Shaila Buckley Law advise that a complete estate plan typically includes:

1. A Will that sets forth who receives your assets when you pass AND/OR
2. A Revocable Living Trust that designates who receives your assets when you pass and how those assets should be managed until they are distributed according to your wishes
3. A Designation of Guardian for minor children (if applicable)
4. A Durable Power of Attorney for Finance that designates someone to make decisions and manage your financial assets that are outside of a living trust if you become disabled or incompetent
5. An Advanced Health Care Directive that appoints an agent to make health care decisions for you, if you are unable, and sets forth your wishes concerning end-of-life care.  
6. A HIPAA Authorization that allows your health care providers to discuss your medical conditions with your designated agents

During a family conversation about the estate plan, it’s important to clarify the roles and responsibilities of the individuals designated to act on your behalf. DS Law underscores that roles associated with estate plans are not honorific: they are real responsibilities, involving time, paperwork, decision-making, and, usually, emotional labor,” so it is wise to discuss:

• What the role entails
• Why a particular person was chosen for the role
• Whether that person feels comfortable serving
• A family meeting is an opportunity to confirm the person is the right fit before a crisis, identify suitable backups, and, if necessary, outline a team-based approach (i.e., having co-executors or trustees with complementary skill sets).

Good To Know: Designating Fiduciaries

The individuals designated to carry out your estate plans may have different titles, determined by your location and the specific tools used to anchor your plan (i.e. will or trust). For example, the terms trustee, personal representative, executor or, more broadly, fiduciary may be applicable. Your estate planning attorney can help you understand the related duties and make appropriate designations. Keep in mind that your designees do not have to be relatives, and it is even possible to enlist a professional fiduciary. 

Anyone you appoint to fulfill your estate plan is legally bound to act in the best interest of your estate and beneficiaries. In fact, in the eyes of the law, your designees are held to a “fiduciary standard,” meaning that they are obligated to take better care of your estate than they do even of their own funds. Given the significant responsibilities involved in acting as a fiduciary, a type of bond, referred to commonly, as an estate bond, is often required. Essentially, an estate bond serves as a guarantee that duties will be carried out in accordance with the law.

Colonial Surety Company makes it easy and speedy for fiduciaries in every state to obtain estate bonds. Simply: get a quote online, fill out the information, and enter a payment method. Print or e-file the bond from anywhere.

Quote and Obtain Estate Bonds Here

Bonding Solutions for Professional Fiduciaries

When families put their trust in you, there’s no time to waste, so Colonial Surety offers The Partnership Account® for Professional Fiduciaries. Sign up in minutes today, and start using this free, one-stop solution for streamlined, hassle-free bonding. Save time and money every time you need to obtain or renew a bond. See for yourself, today:

Yes Please: The Partnership Account® for Professional Fiduciaries.

With Colonial Surety Company on your side, you can obtain any type of fiduciary bond instantly and digitally. Our fiduciary bond portfolio includes: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and more. 

Specific obligee requirements? Trust us: Colonial’s a direct and national, bond writer, and our experts ensure obligee requirements across the country are properly met. 

Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA. Our customers have awarded us a 4.8 Trustpilot score.