Estate planning disconnect

FIDELITY INVESTMENTS recently released a new study that showed 70 percent of parents believe they have had detailed conversations with their children about estate plans and wills, but less than half of children agreed.
FIDELITY INVESTMENTS announced Wednesday that it is eliminating various fees and investment minimums for clients in a price competition with other major money managers.

BOSTON – There’s an apparent disconnect between parents and children when it comes to the topic of estate planning, according to a new report.

Fidelity Investments recently released a new study that showed 70 percent of parents believe they have had detailed conversations with their children about estate plans and wills, but less than half of children agreed. The study was released in conjunction with a new Fidelity tool called Fidelity Estate Planner, which is designed to help customers understand and prepare for estate planning.

“When it comes to estate planning, generally speaking, the sooner the better,” said Kevin Ruth, head of wealth planning and personal trust. “Failing to have an estate plan in place can lead to significant family confusion once a beloved family member passes. Too often, it may result in costly mistakes or the wishes of a loved one’s estate and legacy plans going unfulfilled.”

The study also found 70 percent of respondents had “major misconceptions” about the value of a parent’s estate. Indeed, on average, children undervalued parent estates by $278,000. Eight in 10 parents believe their children to know where to find such documents as wills, power of attorney and health care proxies, but only 66 percent of children agreed.

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“The potential for confusion only becomes greater – and the need to start planning even more urgent – when one considers the modern-day concept of family may include stepchildren, in-laws and former spouses,” according to the study.

For more on the research and Fidelity’s services, readers can visit the company website here.

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