Want to Help Your Child Prepare for When You Pass Away?

While no one wants to think about dying, the reality is that there will come a day that you will no longer be here. Therefore, if you know that there is a certain way you want things done, taken care of, or distributed, you should have an estate plan to outline your wishes. But you may also want to consider sending your kids a “financial love letter,” about what you want your child to do to carry out your wishes when you pass away.

Your “love letter” can explain why you chose to send them the letter, how you trust them more than anyone to accomplish these tasks, and how you want to take the burden of making hard decisions off their plate. One day, your child may even look back on this brave and thoughtful step you took and decide to do the same for their child.

We learned about the financial “love letter” in an article published in Business Insider, and we thought it was an excellent idea. This writer is a woman who recently received such a letter from her 76-year-old father, which provided details and guidelines on what to do with his assets when he dies. She commends her father for doing this as she believes it is a “true act of love” and will provide her with clarity on what to do and how to honor him when the time comes. In order to give her children the same peace of mind in the future, she is planning to do the same for them.

What goes into a financial love letter?

The letter provides directions on how to manage and distribute your assets, debts, taxes, properties, and anything else you plan to leave behind when you pass away. However, you must think long and hard about what information your child may need to get started on this process once you are no longer here. For starters, you can include a copy of your Will, advanced care directive, and information about any trusts you may have. Here are some other details you may want to include in this type of letter:

• Your lawyer’s name and contact information
• Your bank account numbers and contact information
• The name of the person who is your power of attorney, executor of the estate, and beneficiary
• What you want done if you have a medical emergency or accident
• Where you want to live or who you want to take care of you if you can no longer care for yourself
• Who you want your assets, properties, cars, boats, or anything else to go
• How to sell your properties and homes if that is what you wish
• What type of funeral and burial arrangements you want
• Passwords to bank accounts, credit card accounts, and any other accounts that your child may need to access

Why is a financial love letter a good idea?

If you already have an estate plan in place, you may find this all a bit unnecessary. We disagree. This type of letter is most important thing for inheritance issues. A financial love letter is a good idea because it clearly lays out the steps to take to successfully carry out your wishes when you die – steps that may not be outlined in your will. And it also gives you a chance to explain the reasoning behind your choices (if you prefer), and to ensure there’s no debate between family members about how best to proceed.

It also takes the burden of planning off of your kids when they are grieving. It can be extremely difficult for your child to think clearly or make big decisions when they are mourning your death. Therefore, providing a step-by-step guide on what they need to do will help take some of their future stress and worries away. In addition, if you want specific things done in a certain manner, you can rest assured knowing that when you die and are unable to take care of everything yourself, your wishes will still be fulfilled.

The Charlotte estate planning attorneys at Epperson Law Group, PLLC are ready and available to assist anyone who needs help creating a Will, trust, advanced care directive, or any other type of legal document that reflects their wishes and protects their properties and assets. Our team knows and understands that these documents take a lot of thinking and consideration, which is why we are here for you to lean on throughout the entire process. We can also help those who are going through divorce update their estate plans or create financial love letters to explain to their children what to do in the event of their death or a severe illness/ injury. To set up an appointment, please call our office or submit our contact form today. We have offices in Boone, Concord, Charlotte, and Weddington for your convenience.