Dear SharonAnn, My family came for Christmas, and I am happy about that, but I am struggling with the idea of sharing information I’ve always kept private, namely: When I go, they will all be fairly wealthy people. My three children, ten grandchildren and three great-grandchildren will inherit about $5M each. For my 90 years, I have lived a simple life (in my same small house for 60 years) and never spent much. However, my husband and I loved to invest in the stock market and have done quite well over the years. I still do. Do you think I should tell them or let them be surprised when my final will is read? [It would be fun to see their faces!] Signed: Family $ Ahead I am happy you asked this question. Let me tell you about Larry, a modest guy who worked his entire life as an electrician and managed on about $80,000 a year. He is married and has two adult children and recently has retired. His parents passed away, and he was called for the reading of the will. They left him $365 million! Yes! He had no idea, no preparation, no training or financial education. This “gift” took his nice, simple life and blew it away. Now, he deals with attorneys, CPAs and financial advisors and has little time for his dream retirement, fishing on a lake. He has to catch up on a lifetime of money management lessons in a short time if he wants to keep the fortune he inherited. One of the biggest estate-planning goofs is failing to communicate your intentions to your family or heirs. Surprises are not always good, especially the ones that have echoing implications. Does anyone know immediately how to handle $5 million? No. So if it is to be kept, then involvement of professionals for guidance is a must. Time to learn is what you give your family when you communicate your information to them in advance. When there is time to process and understand and accept, then better decisions can result. You can give your family members a wonderful gift by spending time with each one individually and sharing your money wisdom, helping set them on the path of learning and teaching them to be good stewards. Imagine a letter under the tree for each of your family offering to come visit over the next few months. This way, you can see their faces when they understand the unexpected financial gift you will be making. Certainly, it will be fun to watch their jaws drop! The Retirement Concierge offers family trust administration assistance as a team member with attorneys, trustees, and fiduciaries. We do not offer legal, financial or tax advice. For a complimentary copy of “What Everyone Should Know about Being a Trustee REPORT,” email [email protected].
