As we approach 2025, the holidays provide a unique opportunity to gather and discuss your financial plans, ensuring everyone is on the same page. Here are some key topics and tips to help you navigate these discussions.

Remember, while it may feel uncomfortable, it’s important to set the record straight and prevent misinterpretation after you’re gone.

Share Your Estate Plans

You’ve already met with your estate attorney and signed important documents, like your power of attorney, advance directive for healthcare, and will. Now, it’s time to have an important conversation about your decisions. Choose a good time to explain the “why” behind your choices. It’s easiest if everyone is healthy and their lives are fairly smooth.

If you have more than one child, avoid the appearance of favoritism by clarifying your choice of a particular child as your personal representative. Similarly, if you’ve chosen to leave assets in a trust rather to a person, outright, explain how your decision could protect your children’s future interests. An objective third party can ensure distributions align with the trust’s requirements, providing an added layer of protection and impartiality. You might also share your intentions regarding annual gifts, such as your goal to give each child an annual monetary gift equal to the federal annual gift exclusion ($18,000 in 2024), depending on your financial situation.

Discuss Healthcare Wishes

Use this time to communicate your wishes from your healthcare power of attorney. Take time to explain what influenced your decisions, such as a desire to be an organ donor, to help your family understand your preferences. Tools like Five Wishes (fivewishes.org), a national advance-care planning program,
can help articulate your personal and spiritual wishes, supplementing your legal documents and providing clarity for your family.

Tips to Make a Potentially Uncomfortable Conversation More Comfortable

Share a meal: Start the meeting with a shared meal. It helps everyone settle in and ensures no one is “hangry” (hungry and angry).

Move outdoors: If weather permits, take the conversation outside. Being in nature can lower stress and create a more relaxed atmosphere.

Sit side-by-side: Position yourselves side-by-side rather than face-to-face to make the conversation less intimidating.

Plan for ongoing discussions: Recognize that you won’t cover everything in one meeting. This initial discussion should be the beginning of an ongoing conversation.

Lean on Your Advisor

Your advisor can be a trusted resource as you prepare for and conduct these conversations. Having professional guidance can help you feel comfortable with these crucial discussions, ensuring your family understands and respects your financial and healthcare wishes.

Taking the time to have these conversations now will help promote peace of mind for your entire family as we count down to 2025.

Author Patti B. Black Financial Advisor CFP®, CSA®

Patti is a contributor to numerous national media outlets. She has been a guest on Talk of Alabama, Grow Your Business and Grow Your Wealth podcast, and the Breaking Money Silence podcast.

About Savant Wealth Management

Savant Wealth Management is a leading independent, nationally recognized, fee-only firm serving clients for over 30 years. As a trusted advisor, Savant Wealth Management offers investment management, financial planning, retirement plan and family office services to financially established individuals and institutions. Savant also offers corporate accounting, tax preparation, payroll and consulting through its affiliate, Savant Tax & Consulting.

©2024 Savant Capital, LLC dba Savant Wealth Management. All rights reserved.

Savant Wealth Management (“Savant”) is an SEC registered investment adviser headquartered in Rockford, Illinois. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments and/or investment strategies recommended and/or undertaken by Savant, or any non-investment related services, will be profitable, equal any historical performance levels, be suitable for your portfolio or individual situation, or prove successful. Please see our Important Disclosures.