Family Wealth Planning
It is often difficult for the elder generation and their adult children to communicate about the transfer of wealth from the elder generation to the younger generation. Elders generally work with attorneys, accountants, and financial planners, without the input of their adult children. However, much is lost without the participation and thoughts of the adult children, who will be most affected by their parents’ decisions.
Both the elders and the adult children can be very uncomfortable with this discussion. The financial privacy of the elders is breached. There is fear on both sides that the elders will be viewed as a source of money and the children as “greedy”. They may be disparities of views. There might be conflicts resulting from inequalities of financial capability among the younger generation. All these plus parental and sibling conflicts that have a long family history can make this process difficult.
However, this silence and lack of participation can result in significant unintended mistakes in the parents’ estate planning process. This can include inadvertent unequal distribution to children, and unneeded assessments of gift taxes or estate taxes. Property can also be transferred, sometimes by mistake, to non-family members having no current contact with the elders. If there is a family business, a succession plan can be addressed. Potential care giving issues the elders might face can also be discussed.
Estate planning instruments and planning that had vitality 20 years earlier, may not be what the elders want now, and might not serve the family’s best interest. After the elder dies, is it usually too late to correct these mistakes because all the elder’s documents become irrevocable at death. Discussing these issues face-to-face may be too difficult and unproductive for the family.
In family wealth planning mediation, a family mediator will function as a neutral third party who listen to the interests of all parties and facilitates the discussion. The mediator helps the parties resolve any conflicts that exist, and act as an impartial third-party sounding board for the family. In this way, estate disputes and will disputes can be prevented.
The mediator can facilitate and further the discussions with the elders and the family and help the family decide on changes and strategies in the succession of wealth from one generation to another. This can be a great choice for a family with an elder generation that wishes to capably prepare for death.
If you are considering estate mediation, and would like to speak with a MCFM mediator, search our database for estate and probate mediators specializing in Family Wealth Planning within the Commonwealth of Massachusetts.
Return to Estate Planning Mediation