Successful Generational Wealth Transfer
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Successful Generational Wealth Transfer -
A huge sum of wealth is transferred to beneficiaries every single year – whether in the form of property, investments, money, or anything with a monetary value. Many of these assets end up being passed on to the next generation or to grandchildren. While a Will is useful and important, in the end it’s just a suggestion of your wishes and must be validated by a judge through a process known as probate. That can be a lengthy, costly process which does not prevent the estate from tax implications and is also inflexible. There are strategies and solutions to minimize taxes, fees and guarantee the outcome.
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The Intention
Generational wealth transfer is wealth that moves by inheritance after death or through gifts during life from one generation to the next. It is an important component of household wealth and one that benefits millions of households. People who inherit generational wealth have a significant financial advantage and will likely have the ability to avoid student loans and other types of costly debt. While there is nothing wrong with fighting for your own, the financial outlook for the next couple of generations is not that promising and a little head start, if structured correctly, could go a long way.
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The Reality
Reality is that research indicates only about 30 percent of all wealth transfers are successful, with success being defined as the family retaining control of its assets and family harmony post-transfer to heirs. That means that in most of the cases, families experience an involuntary loss of control and assets, caused by miscommunication and the lack of professional advice.
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The Solution
Establishing family wealth guidelines. It needs to be determined who is making financial and planning decisions and who has the final say. Design and implement a process for how decisions are made and communicated and where these decisions are documented. process for changing plans and communicating those changes?
Ensure that younger generations are educated about wealth..
Create a Plan for future wealth needs and unforeseen issues. Ensure to have a partner that will keep your wealth management plan on track.
If you are interested in establishing your own family wealth guidelines, we would be happy to assist. Contact us for an initial meeting.
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It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
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It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
