Do Family Secrets Hurt Estate Planning?
A financial services research study highlights how family secrecy undermines effective wealth transfer. While most asset holders intend to share their estate plans with family members before passing away, only approximately half actually follow through.
Survey Findings
The research examined two groups: affluent investors holding more than $250,000 in investable assets and younger near-affluent individuals under 45 earning over $125,000 annually. Key discoveries included:
- Only 26% of respondents reported that heirs were “very well informed” about their parent’s wishes and bequests
- Greater wealth correlated with more frequent conversations; roughly one-third of those with over $1 million in assets had discussed plans with heirs
- Those with less than $250,000 either weren’t sure heirs knew their intentions or admitted heirs had no knowledge whatsoever
- A full 25% of respondents never intended to disclose asset information during their lifetime
Impact on Estate Planning
Estate planning attorneys understand multi-generational family complexities and the reluctance families often display about discussing finances. This secrecy prevents comprehensive planning because many wealth management aspects require active participation and involvement from multiple people during the asset holder’s lifetime.
Critical Planning Elements
Successful wealth transfer demands communication. Planning for incapacity requires siblings, spouses, and heirs to be informed about advanced directives, powers of attorney, and healthcare decision-making documents. Without these documents in place, loved ones face significant emotional and financial burdens.
Healthcare costs in later years can rapidly deplete assets, making discussions with an estate planning attorney about long-term care and Medicaid planning essential for wealth preservation.
If you or a loved one needs assistance with estate planning and wealth transfer, do not hesitate to contact The Stegall Law Firm. We are here to help.
