Historically, beneficiaries learned of wealth transfer plans only after the death of the grantor. However, this approach often leads to unanswered questions and, potentially, feelings of betrayal when expectations for future gifts are left unmet.

More recently, some wealthy families have been using a Statement of Wealth Transfer Intent (SOWTI) as a starting point for their wealth transfer planning and later sharing it with their beneficiaries. SOWTIs allow for a more harmonious and purposeful transfer of both wealth, and importantly, family values.

A new workbook from Northern Trust offers guidelines for preparing your own statement of intent. These statements are intended to complement your estate planning documents (but do not override the specific terms of your trusts) and allow you to expand on how your own values and life experiences have informed your plan.