The subject of inheritance is one that most people studiously avoid for a number of different reasons: superstition, fear, lack of knowledge, or—as this article by Gordon Powers points out—they don’t want to appear greedy. Furthermore, many older adults were raised to believe that money was a private affair, and that talking about it was inappropriate, almost dirty. The difference in how the older and younger generations view money and its place in “polite conversation” has become so great in some cases, that it’s no wonder they avoid any mention of it.

An unfortunate side effect of this disconnect is that a refusal to talk about money or your estate plans with you children means that they will have a difficult time following your wishes in regards to inheritance. According to Mr. Powers (and most of the adult children who come into our offices to create their own estate plans) “most middle-aged adults really want to fulfill their parents’ last wishes, regardless of how much money they might or might not see in the end.”

So the answer to the title question is yes, you should talk to your children about inheritance if you can. Talking about it will not only make it easier for them to follow your wishes, it may even help you determine how you want to make a difference in the lives of your heirs.

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The recent death of Senator Ted Kennedy has given us an opportunity to reflect on the unique nature of trusts not only as a tool to protect assets for future generations, but also as a way to leave a lasting legacy for your children and grandchildren.

The Kennedy trust—or Kennedy trusts, we should say—are some of the best examples of how comprehensive and versatile trusts can be, as this article by Gerald Posner illustrates. The trusts were first established by Joe Kennedy; one in 1926, another in 1936, and another in 1949. Each trust had its own unique purpose: the trust established in 1926 was for Rose and the children, whereas the trust established in 1949 was intended for his grandchildren. Furthermore, each trust was set up as a blind trust, designed to act independently from any other trust.

The Kennedy trusts were built to last, with each successive trustee working to provide for the beneficiaries while protecting the principal for future generations as well. And last they have, to the extent that today—even taking the recent economic downturn into account—the trusts have survived… and even flourished in some cases.

You don’t have to be a Kennedy to leave a legacy for your children or grandchildren. The Kennedys certainly had a financial head start, but trusts can be designed to protect and build on even a modest estate. Whether your desire is to provide for your immediate heirs, or leave a legacy that lasts far into the future, a trust can help you accomplish your goal.

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