Willing Wisdom

In the coming months and years, those of us who are Gen-Xers have the opportunity to get ahead of a known issue. However, it will require some courage and a bit of preparation on our part. The known issue is the aging of our parents and the inevitable reality that, at some point, they will pass on. We can better prepare ourselves for this eventuality by sitting down with our folks and talking about the plans they have made to deal with their estate. I know many of us are uncomfortable with the prospect of initiating this discussion but it is a conversation we ought to have before it is too late. But how do you get started?

We recently hosted a presentation with Dr. Thomas Deans on this important issue. His two books, written in the same accessible style as The Wealthy Barber, offer some great strategies on how to approach two challenging topics:

• Business ownership succession; and
• How you are planning to divide your estate and when should you let your beneficiaries know

Dr. Deans does a great job spelling out all the benefits associated with starting this important conversation sooner rather than later so you can find out the answers to questions such as:

• Who are your parents planning on leaving their wealth to and will they share a copy of their will with you?
• What are your parents' final wishes?
• Where are all the documents for all insurance policies and financial accounts?

And more importantly he shares a great strategy on how to start this conversation using a series of 7 questions that are deliberately designed to make the process inclusive and non-confrontational.

Some of you may be reluctant to broach this subject with your parents and siblings. However, consider these 2 stories and I think you will see the value in being proactive.

- Musical genius Prince died April 21, 2016 at the age of 57. Shortly thereafter, a Minnesota judge confirms that - despite Prince's estate being valued at approximately US$250 million - the singer did not have a will in place to declare the distribution of his assets.

- Robert F Kennedy's last will and testament, dated 1953, named his brother, John F Kennedy, as a co-executor, co-trustee and successor guardian of his children. Bobby was tragically assassinated in 1968, almost five years after his presidential brother had met a similar fate. However, Bobby never updated his will to reflect the passing of his brother. Fortunately, the document had been properly drafted and provided for the contingency that if any of the named executors did not act, others could fill the vacancy which is what ultimately transpired.

Successful advisors will be the ones who are able to help initiate the type of family meetings that discuss these very important topics. However, those same advisors need to lead by example. Do you have an up-to-date will? Have you discussed its contents with your children, regardless of whether or not they are adults? Dr. Deans mentioned that he had attended 51 consecutive family meetings for his own family and he is only in his mid-fifties…

More information can be found at willingwisdom.com. I encourage you to invest the time to complete the Willing Wisdom Index to assess how prepared your family is to manage your health and inherit your wealth -- a good exercise for a rainy Sunday afternoon. You might also want to explore how you could help your clients use the index for their own family situations.

The views expressed are those of the author, and not necessarily those of Raymond James Ltd. It is provided as a general source of information only and should not be considered to be personal investment advice or a solicitation to buy or sell securities. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. The information contained in this article was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. Raymond James Ltd. is a member of the Canadian Investor Protection Fund.