Over half of adults haven’t discussed their estate plans with anyone. Here are 5 reasons to start the conversation

Having conversations about what will happen after you’re gone can feel uncomfortable, but they can have considerable value.

Discussing your intentions early and honestly can help minimise confusion, avoid future disputes, and ensure your wishes are properly understood.

Despite these benefits, research shows many people still avoid the discussion. According to data from The National Will Register, 53% of UK adults have never spoken to anyone about what should happen to their estate when they die.

Failing to communicate your estate intentions could leave your beneficiaries uncertain and unprepared, and could increase the risk of a familial dispute.

Below are five reasons why initiating this conversation is important.

1. Ensure executors and trustees are prepared

Naming an executor is one of the most important decisions you make in your will, as they are the ones responsible for managing your estate and distributing assets in line with your intentions. You may also need to appoint trustees to oversee any assets held in trust.

However, because many people fail to discuss their estate plans or wills with others, it is common for executors or trustees to be unaware of their responsibilities until after the person has passed away.

This can mean they feel unprepared or unsure of their duties, which might lead to unnecessary stress and upset, or cause them to seek professional assistance and spend more than they need to.

As such, it’s a good idea to speak with those you intend to name in these roles in advance. This gives you time to clarify their responsibilities and provide them with a clearer understanding of your intentions. It also means you have time to name someone else if they’re unwilling to take on the role.

2. Reduce the risk of disputes

Transparent communication around your estate plan can provide context for your decisions and help prevent disputes later on.

Disagreements over wills are becoming increasingly common. According to the Guardian, around 10,000 people contest wills each year, and that number has been growing steadily.

Common causes include rising property values, higher numbers of blended families, and concerns around capacity due to dementia or other illnesses.

By talking to your beneficiaries and loved ones about your intentions (as well as keeping your will and supporting documents updated), you can make your wishes clear and help reduce the risk of rifts and challenges further down the line.

3. Help manage expectations

Having an open dialogue with your beneficiaries can also help set realistic expectations about what they are likely to receive.

In some cases, they may be relying on an inheritance to achieve personal goals such as buying a home or starting a business. However, your estate – or the portion of it you plan to leave them – may not be able to meet those expectations.

Conversely, you may plan to leave them more than they thought, which could mean they can start making preparations for how they will use their inheritance to achieve goals that may have previously seemed distant.

Either way, clarifying your plans in advance can help your beneficiaries make informed financial decisions for their futures.

4. Understand your beneficiaries’ priorities

When talking to your beneficiaries about your estate plan, you may learn about the wishes or needs that they have.

For instance, while you may have intended to split your estate equally, one beneficiary may have a sentimental attachment to a particular asset, while another may have greater financial need.

Discussing these preferences in advance gives you the opportunity to reflect them in your plans. This may reduce the likelihood of misunderstandings and help ensure your estate is divided in a way that feels fair to all involved.

5. Improve the efficiency of your legacy

Talking with your beneficiaries about your estate could also help ensure your legacy is managed more efficiently and in line with your intentions.

For example, in some cases, it may be beneficial to place assets in a trust for specific purposes, such as funding a grandchild’s education or supporting a future property purchase. Gifting certain assets during your lifetime can also improve tax efficiency and provide more immediate support to your beneficiaries.

In every instance, open and transparent communication can help ensure the goals of your family and loved ones are considered together, and your estate is maximally efficient while providing for them.

Get in touch

A financial planner can work alongside you to create an estate plan that reflects your wishes and minimises the risk of future complications. They can also help ensure that both you and your beneficiaries are on the same page, and can even mediate discussions that might otherwise be difficult or emotionally charged. This can help support efficiency, reduce the chance of disputes, and provide peace of mind for everyone involved.

To speak to a financial planner, get in touch.

Email [email protected] or call us on 01625 466360.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

Remember that taper relief only applies to gifts in excess of the nil-rate band. It follows that, if no tax is payable on the transfer because it does not exceed the nil-rate band (after cumulation), there can be no relief.