If you have a sizable estate that you’ll be leaving to your adult children, then your children probably need an estate plan of their own. To encourage them to plan their estates, consider these quick tips:
Explain why estate planning is important. You don’t want to dictate what they should do with their estate, just emphasize the need for estate planning. When your children encounter major life events, such as marriage, divorce, or a child’s birth, remind them to review their estate plans.
Encourage your children to get all important estate planning documents in place. At a minimum, every adult should have a will, a durable power of attorney, and a health care proxy.
A durable power of attorney designates someone to control their financial affairs if they become incapacitated, while a health care proxy delegates health care decisions to someone else when they are unable to make those decisions.
Coordinate estate planning across generations. If you have a substantial estate, you may want to coordinate your estate planning efforts with those of your children.
For instance, if your children also have substantial estates, they may prefer that their inheritance be distributed to your grandchildren instead. A coordinated effort can help minimize estate taxes.