Is It a Good Idea to Tell Your Heirs About Your Estate Plan?

estate20planning20istock-181887864.jpg

Death — nobody wants to talk about it, but it’s going to happen to all of us eventually. If you’ve worked hard and been fortunate enough to have amassed valuable assets, it may be a point of pride for you to leave your heirs with an inheritance. But should you tell them about it ahead of time?

See: 7 Key Signs You’ve Reached Financial Freedom

Discover: 6 Unusual Ways To Make Extra Money (That Actually Work)

Here are some things to think about.

Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.

Unequal Bequests May Require Explanation

If your plan is to leave money to your children, you may simply divide everything equally. In other words, if you have two children, they each get half. But if you decide to divide the money in a different way, it may be helpful to have a conversation about it to avoid hard feelings after your death.

Suppose, for example, that you have two children. One is college-educated, with a good job and strong career prospects. The other has special needs, works part time and requires support. You might want to leave a larger portion of your assets to the child who is less able to support themselves. Or, perhaps you have one adult child who is unmarried and has no children. The other child has two children. You may want to leave more assets to the child who has children of their own, to help pay for college in the future.

Disclosing Bequests Doesn’t Need to Involve Numbers

Disclosing your plans to divide your estate doesn’t need to include the specific amount of money you currently have or expect to have when you pass away. You can indicate how the estate will be divided up by percentages without going into amounts.

If You Disclose, Be Sure to Keep Everyone Up to Date

Whether you tell your heirs how much or what portion of your estate they will inherit — or simply that they will get something when you die — be sure to update them if your situation changes. Telling children they will inherit, and then remarrying and leaving everything to the new spouse is a recipe for disaster.

However you decide to divide your assets, and whether you choose to tell your heirs ahead of time, be sure to leave important papers and contact information in a place where your heirs can find them. This includes the names and phone numbers of your attorney and financial advisor, your will or any trusts and the passwords for your online accounts. This will make it far easier for your heirs to settle your estate.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Is It a Good Idea to Tell Your Heirs About Your Estate Plan?