ATMOSPHERE - Estate Planning for those you love can dramatically alter the course of your family for generations. In his last will and testament of 1799, George Washington, laid out a clear vision for his legacy. He bequeathed the “use, profit, and benefit” of his whole estate to his “dearly beloved wife Martha Washington.” He also forgave the debts of many of his family members, financed the establishment of a school for orphans, earmarked stock for what is now Washington and Lee University and made arrangements to care for others dear to him.
Vowing, “I have set my hand and Seal,” Washington used his will to provide for the people he loved, settle unfinished business and assist the less fortunate. More than 200 years later, Washington’s estate plan retains surprising currency. In the modern era, family, friends and philanthropy remain the dominant pillars of our own last intentions.
Washington indicated that his deliberations were not easy. He relayed that his will’s creation “occupied many of my leisure hours to digest.” At more than 5,500 words — the equivalent of nine single-spaced pages — it is impressive in its scale and specificity.
Our own estate planning may not require the same degree of labor or intensity. However, we can glean an important lesson from Washington. His writing was eminently personal; it captured his precise situation at the time and laid out his future vision.
Ideally, your own estate plan should reflect that same personalization. While the words “last will and testament” sound imposing, it is important to recognize that estate planning is not limited to a single legal document. A good estate plan is profoundly human in its touch points, reflecting the dynamics and needs of the people you love and the causes you cherish.
Estate planning is built on a foundation of three key elements: communication, clarity and customization. By considering these aspects in more detail, my hope is that you, like Washington, can set your own “hand and seal” to effectively relay your wishes, reassure your loved ones and cement your lasting legacy.
Communication: Key to Your Peace of Mind
Much has been written about estate planning. There are many guides that detail practical steps that you, your spouse and your heirs can address in order to reduce stress, streamline organization and facilitate the smooth transmission of assets. I am wholehearted in espousing these frameworks. They rightly document the “nuts and bolts” that you, your financial adviser and your trust and estate attorney should perform for the smooth functioning of your estate.
For many people, however, there is a parallel need that is just as significant: active communication with your spouse, children or heirs.
An estate plan is only as good as its agents. It is important for both spouses to have a good working knowledge of a family’s intentions. Husbands and wives should both be involved in drafting final documents to avoid unforeseen complications during the most vulnerable of times. It is also wise for both spouses to be comfortable with a family’s financial adviser, attorney and accountant, as these relationships will be integral to unwinding the complexity and administrative challenges that can accompany the execution of even the most organized estate.
Moreover, communicating the estate plan to children is essential. While our culture tends to put off these discussions, it is important to transcend any short-term hesitancy for the more lasting benefit of having a clear plan in place.
Admittedly, families have distinctive dynamics. Not every spouse is going to take a keen interest in estate planning. Not every child will want to preview the detailed disposition of assets. In this case, it’s important to have a basic protocol is in place. For some families, that may boil down to just saying, “Call the financial adviser at this number.” Your peace of mind can hinge on that basic directive, so it’s a good idea to cover that fundamental first action as soon as possible and then move on to the itemized priorities of your estate-planning checklist.
Clarity: Providing a Deeper Understanding of Your Intent
When you think of estate planning, you probably think of your last will and testament. However, a will may not fully convey the spirit and subtlety of your intentions.
You may want to consider the role of a “personal statement of intent” or a “letter of wishes” within your own legacy design. This document works in tandem with your will to convey a deeper level of personalization — and possibly explanation — for your heirs. This private document is non-binding. Whereas a will may become a publicly registered document under the probate laws, a personal statement of intent will be accessible only to the people you stipulate — typically your executor, trustee and heirs.[KPL]