“Before assets reach children or charities, they most often move to a surviving spouse,” Erica Ellis, J.D. reminds financial advisors.”Women will control a growing share of wealth in the coming decades, driven largely by longevity, Ellis reminds readers of Financial Advisor magazine, and in most marriages a wife will outlive her husband. The moment of transfer (when the widow has become the sole decision maker over assets), is not when she should be learning about an investment account for the first time.
Ellis is offering practical “coaching” to planners, helping them:
- avoid loss of assets under their management
- avoid being blamed by a surviving wife for being trapped in a difficult financial situation after her husband’s death,
The article actually makes an important point about the importance of including both spouses in the estate planning process itself.
As Indiana estate planning attorneys, we must help couples “envision” possible outcomes of various choices they make. Not always is the husband the first to die, but depending on choices the couple makes now (and together), the survivor can be limited in the ability to access equity, sell property, or help children.
Engaging with everyone impacted by an estate plan, adult children included, builds transparency and trust, Ellis urges financial planners. Not only do these “talks” make wealth transfers smoother, the advisor’s relationship with their clients become more durable.
One of the guiding principles at Geyer Legal is communication. We encourage family conferences to help acquaint the younger generation with their parents’ estate plans and allow them to meet members of their parents’ advisory team. Not only will this make settling parents’ affairs much simpler later on, but, even more important, it allows parents to openly share with their loved ones the values and assumptions – along with the issues – that have gone into their estate planning choices.
– by Katrin Hodson, Attorney with Geyer Legal
