Ensuring that your loved ones are taken care of once we’re gone is one of the most important things that we will do in our lifetimes. And yet according to a 2021 study by Canada Life, a staggering 59% of UK adults still do not have a will or any sort of estate plan in place. This may in part be due to the fact that estate planning is often seen to be either only for the extraordinarily wealthy. As the holiday season approaches it is so important to take advantage of this opportunity, with all of your loved ones in one place, to construct an estate plan tailor made for you and your family.
Whether it’s deciding who will inherit your home, ensuring guardianship for your children, or creating a roadmap for your assets, estate planning is for everyone. And here’s how to start.
When beginning your estate planning journey it is important to first understand what estate planning actually means. It is so much more than just writing a will. It involves organising your assets, naming beneficiaries, outlining medical directives or even establishing trusts if that works for you and your family. In effect, the goal of estate planning is to create a clear plan for how your financial and personal matters will be handled when you are no longer around. So to get this process started you can begin by listing your assets: including property and real estate, bank accounts and investments, personal belongings, insurance policies and digital assets – ensuring that your family is aware and well versed in all aspects of your financial situation so that they will be ready and able to handle matters when the time comes.
It is then your responsibility to set some goals for your estate planning journey – what do you want to achieve? Your primary priority could be to avoid family disputes, provide financial security for your loved ones, outline care preferences etc. Then once you have defined your priorities it is then imperative that you get all your paperwork in order, which should include at the least your will, trusts if applicable and your desired powers of attorney – ensuring that you are reviewing and updating your estate plan and these particular documents regularly and intentionally.
Most importantly though when it comes to cultivating your estate plan involving your family in the conversation should be at the top of your priorities. And the holidays are a natural and perfect time for family discussions as loved ones that you may not see throughout the year will likely all be in the same place at the same time. So take this opportunity to gather everyone and start an open honest dialogue about your present financial circumstances and future plans. Begin by addressing why estate planning is important – not just for you, but for your family too. Some conversation starters for this could include: ‘I want to make sure everything is clear for the future so there’s no confusion or stress for you because I care for you so much’ or ‘let’s talk about how we can honour everyone’s wishes when the time comes because what you want and need is important to me’.
Ultimately estate planning isn’t just practical – it’s a gift to your family. And the holidays, with its focus on love and connection, provides the perfect backdrop for these important financial conversations that will lead to clarity and collaboration on long term decisions that will greatly impact not only you but more so those you love. By starting now, you can enter into the new year with a clear, confident plan in place. So take the first step today.
Sign up now to Know Your Dosh and simplify the process and give you the confidence to face your financial future as a family.
