The planning process and family dynamics

What the topic covers

This guide brings together implementation, family communication, governance, inheritance fairness, heir preparation and fiduciary selection. These are separate discussion topics, even when the same relatives participate in each conversation.

In Minnesota, for example, a lawyer's conflict rules and a trustee's duty to inform beneficiaries are set by state law. Other states differ.

A practical starting agenda can cover intentions, document locations, proposed successor roles and responsibilities without making dollar disclosure the focus. Keep that voluntary agenda separate from the trust information duties described below.

Clarify the lawyer's clients and potential conflicts

In Minnesota, a concurrent conflict exists when clients are directly adverse or there is a significant risk that representation will be materially limited by the lawyer's responsibilities or personal interests.

Those responsibilities can involve another client, a former client or a third person. Representation involving a concurrent conflict is prohibited unless all four conditions below are satisfied.

• The lawyer reasonably believes competent and diligent representation can be provided to each affected client.
• The representation is not prohibited by law.
• The representation involves no claim by one client against another client represented by the lawyer in the same litigation or other proceeding before a tribunal.
• Each affected client gives informed consent confirmed in writing.

Consent alone does not make every conflict permissible. These are rules for lawyers, rather than obligations attributed to every estate planning professional.

For the planning conversation, list the people and businesses seeking advice and ask the lawyer to clarify who the clients would be.

Separate the meeting agenda from trust information duties

In Minnesota, a trustee must keep qualified beneficiaries of an irrevocable trust reasonably informed about administration and material facts necessary to protect their interests.

The trustee must promptly respond to a beneficiary's administration information request unless it is unreasonable under the circumstances.

An express trust provision may substitute the settlor or another information recipient during a period when the terms require that recipient to receive the administration information and material facts necessary to protect beneficiaries' interests.

The trustee must promptly respond to that recipient's administration information requests. Unless the terms provide otherwise, the recipient has standing to enforce the trust but acts in a nonfiduciary capacity without a duty to enforce or take other action.

A trustee expressly prohibited by the settlor from sharing information with beneficiaries may petition for judicial approval. The petition must comply with the statutory notice requirements.

A beneficiary may waive required information or withdraw a previous waiver by delivering notice to the trustee. A meeting agenda without dollar amounts does not establish a right to withhold all information indefinitely.

Organize the next conversation

Use a discussion list to gather goals, ownership records, existing documents and their locations. Add proposed roles, succession preferences, implementation tasks and follow through questions.

For shared property, discuss use, maintenance, repair contributions and decisions. For a family business, include next generation participation and the preferences of relatives who are inactive in the business.

Keep inheritance fairness and preparation to manage wealth as explicit discussion topics. Record the family's objectives and unanswered questions rather than treating the conversation as a promised outcome.

Two related terms

• Family governance

  For this guide, family governance means the family's proposed procedures for discussing shared wealth, responsibilities and decisions. The label alone establishes no trustee power, ownership transfer or binding agreement.

• Equitable inheritance

  Equitable inheritance is the family's assessment of fairness in light of circumstances and objectives. It is not a statutory distribution formula.

EstatePlanner.com resources for your next step

• How estate planning moves from strategy to implementation

  Open this guide to organize the document and implementation questions that emerge from your family discussion. Use it when your next task is turning intentions into a concrete work list.

• How families communicate about estate plans

  Use this guide to think through the sequence of conversations and the input you want from relatives. Bring your proposed meeting agenda and questions about how information may be received.

• How family relationships affect fiduciary roles

  Read this next when relatives are being considered for responsibilities. Use the discussion to gather questions about each proposed role and the family relationships involved.

• Estate planning discussion checklist for owners

  Use the checklist to collect goals, ownership records, document locations and proposed responsibilities before your next appointment. Keep unresolved implementation questions together for follow through.

A perspective on understanding intentions

This talk's discussion of personal stories offers a conversation prompt: what would you want relatives to understand about your intentions?

"single family offices it is a very personal driven business right they would want to see down with the founder they would like to get to know them to understand their story and never underestimate the the power of a storytelling right"

Common questions

• What should we gather before a family estate planning discussion?

  Gather goals, ownership records, existing documents, document locations and proposed roles. Add succession preferences and a list of implementation tasks and unanswered questions.

• What changes are useful prompts for a review conversation?

  Changes in family circumstances, assets, residence, business ownership or fiduciary availability are practical prompts for discussing a review. Put the changed circumstances on the agenda alongside your existing documents.

• How does an inheritance age differ from readiness to manage wealth?

  An inheritance age is a scheduled distribution point, while readiness concerns practical preparation to manage wealth. Discuss financial preparation and next generation participation as their own planning topics.