“Before assets reach children or charities, they most often move to a surviving spouse,” Erica Ellis points out in Financial Advisor Magazine, urging financial advisors to establish relationships with both spouses. “The moment of transfer” (after one spouse has passed), is not when the other should read a trust agreement or learn about an investment account for the first time.”
After all, as Ellis points out, “A deceased spouse’s estate plan functions as the governing document for their surviving spouse’s financial life.” That plan determines:
- whether the survivor can access principal
- how he or she receives income
- whether assets pass to him/her immediately or in trust
- whether the survivor can sell the family home.
While Ellis’ advice is geared specifically towards financial advisors, aimed at helping those advisors retain surviving spouses as clients, here at Geyer Law, we strongly agree with her statement that “It is our core obligation to ensure the plan works for the people it is meant to protect.” In practical terms — both spouses should be involved in every step of the Indiana estate planning process.
Taking the involvement a step further, as Indiana estate planning and elder law attorneys, we highly recommend family conferences too help acquaint not only spouses, but the younger generations with the values and assumptions (along with any issues) that go into estate planning choices.
Sharing information and intentions, Ellis stresses, “makes wealth transfers smoother and relationships with advisors more durable.” It’s the people involved – and those who will be affected – who should “navigate these moments with collaborative advisory oversight.”
Whether wealth transfer becomes a source of stability or conflict –and whether an advisor relationship survives it — depends largely on who was included in the planning conversation.
– by Rebecca W. Geyer
