Estate planning (and the eventual distribution of assets) has as much to do with your parents as it does with you. While your parents will make plans for their money and other property, you (and other loved ones) will be part of the asset distribution process.
Often, estate planning seems like a taboo subject since it relates to your parents’ death. However, it is usually an essential conversation to prepare for what will happen during probate and asset distribution.
These are some reasons you should talk to your parents about their estate plan.
When you are (or might be) the personal representative
A personal representative has a few crucial responsibilities. If your parents have mentioned they are considering you for their personal representative, you should know what tasks could be involved, including:
- Paying taxes (including ones that are past due)
- Dealing with creditors
- Distributing assets to loved ones
Often, the tasks entrusted to a personal representative become cumbersome if the person nominated lives in a different state or disagreements about the terms of the will or estate planning develop.
Knowing what to expect
As parents get older, they are more likely to make comments like, “this will be yours one day.” Some family members may brush these comments off, but others may see them as a promise.
When inheriting a specific asset (like a house or vehicle) could mean that you need to make specific financial plans, it is good to talk to your parents about their estate plan and what it includes.