London’s Underground phrase Mind the Gap was a call to tube riders to pay attention, and it’s since become a business meme to explore what’s missing, a reminder to be aware of what’s not (yet) present.
As it’s Make-A-Will Month, extrapolating this iconic phrase to estate planning and administration, as a reminder for testators and executors to be mindful of the gap in beneficiaries’ expectations.
A recent study found that about 2/3rds of millennials assume they are getting an inheritance, while less than 40% of their parents’ generation have no intention to do so!
Clearly a result of a lack of communication between parents and their adult children (beneficiaries).
A similar gap in expectations occurs with estate administration. While statistics on court cases challenging wills or executors are not readily available, we know the probate system is backed up, the delays have become "endemic" (as labelled by @TheAdvocatesSociety). There are countless stories about challenging executors, and while many are rooted in family dynamics, most are amplified by a general misunderstanding of estate administration and frustration with how long it requires in Ontario.
This article, the first of two on this theme, is about testators and estate planning - aligning expectations of all involved, beneficiaries, executors, family and others by:
Adopting a Holistic Approach
Reframe estate planning as legacy planning, to ensure all aspects of your current and future needs are considered. That includes considering use of trusts, setting out healthcare and POA directives, and crafting a letter of intent if/where appropriate. (Check out this great episode from the ExecutorHelp podcast, hosted by DavidEdey, CEA where his guest Francine Tone discuss the value of a legacy planning framing).
Involve all your trusted advisors from the outset, such as your accountant (or tax advisor), financial and insurance planners, and an estate strategist (see my recent post Advisors Unite).
Keeping Planning Fluid
Wills are not a one-time exercise. They need to be regularly updated to reflect life events and changing circumstances. Set a cadence for regular reviews of your plans with your advisors (I advocate for annually - integrating it into your annual income tax return preparation).
Ensure planning accounts for inflation, particularly around healthcare costs (#RealityCheck - from a recent Forbes article “increased healthcare costs and longer life expectancies [will] impact the amount available for inheritance.”)
This is a time for “radical candour” - consider hosting a family meeting, or meeting with your family members separately (see STEP's "Family Dialogues" guide), to let them know your intentions and wishes - and if needed, explain why “equal” is not always “equitable” (see
Charles Ticker
‘s recent post and interview entitled “Broken Promises and Great Expectations Why Equal is not always Equitable,” that inspired this post).
Address potential issues around ex-spouses, dependencies, and others proactively - informing them of your intentions helps set (or reset) their expectations and potentially ward off estate challenges.
Selecting Executors Purposely
Choose executors who are well suited for the role, with the necessary strength of character and high emotional intelligence to navigate the challenging process and carry out your intentions as per your expectations (see my recent post “How Do I Choose My Executor?”).
Provide your executors support by informing them as you write your will (#NoSurprises, please), organizing all your affairs in a manner they can readily work with (technology is your friend - there are lots of options for storing and sharing details), and including in your will authorization for them to engage a CEA (Certified Executor Advisor - learn more at CICEA's website).
The sequel to this article is about steps executors can take to align beneficiary expectations from the outset and throughout the administration of the estate.
[Please note: This post is not intended to convey nor imply legal or tax advice - I am not a lawyer, nor do I provide income tax services. I will gladly refer you to lawyers and tax advisors specializing in wills and estates work that I work with.]
