The Ultimate Gift

The estate planning process has a tendency to focus on tax savings and passing on property; yet, there are other valuable assets we all have that should be part of the estate planning process. I am referring to passing on a sense of values and life experience.

I recently read the book The Ultimate Gift. This book describes the way one well-to-do man decided to share his values with his son by having the son gain life experiences. The book really drives home the importance of leaving behind more than just money. It also describes a creative way to “encourage” the younger generation to step out and take the steps necessary to get these life experiences.

Some people draft letters or prepare video tapes to be included with their estate planning documents. The term “ethical will” has been used to describe these efforts. The idea behind the ethical will is to pass on information about the decedent’s values. The probate courts generally do not enforce terms in these living documents as they are not executed with the formalities required for wills and are not a part of the will. Nevertheless, these documents may allow the person to share their life experiences or lessons learned.

The father in The Ultimate Gift does this by leaving a letter to be read by his estate planning attorney. The estate planning attorney carries out his duties by delivering the message to the son over time. The book then chronicles the life experiences and lessons learned by the son.

How have you decided to pass on your values? Did you include a letter or video with your estate planning documents? Have you seen a loved one do this and, if so, how were the documents received by the beneficiaries? Please share your comments.