Transferring Wealth: 4 Tips to Keep in Mind

Most of a family’s wealth fails to transfer to the third generation, according to a report by MFS Investment Sentiments Insights.* Creating a plan and understanding how your wealth will transfer in the future is critical if you want to pass down your hard-earned money to future generations. Follow these tips to increase the chances your money lasts for years to come while avoiding family conflict.  

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Transferring Wealth: 4 Tips to Keep in Mind

19 Oct 2017

Transferring Wealth: 4 Tips to Keep in Mind

Most of a family’s wealth fails to transfer to the third generation, according to a report by MFS Investment Sentiments Insights.* Creating a plan and understanding how your wealth will transfer in the future is critical if you want to pass down your hard-earned money to future generations. Follow these tips to increase the chances your money lasts for years to come while avoiding family conflict.

Develop a Family Financial Map 

List all family members who could benefit from your plan. Identify any special concerns, such as custodial care for children, or responsibilities, such as power of attorney, those members might have. Keep in mind those who may not be tied by blood but are considered family, such as godchildren.

Communicate Early and Often 

Talking with your heirs about what they will receive can help alleviate financial and emotional stress. Make a point to discuss the plan several times a year so the pressure of an intense kitchen-table conversation can be lifted. These conversations can help your children make their own financial plans based on what they might be receiving. They can also help shape how you distribute your wealth between them, especially if there is a family business involved.

Be Clear About Your Expectations and Values 

Do you have a favorite charity that will be receiving some assets at your passing or maybe a niece with special needs? Let your children know the reasons behind your decisions, so they won’t feel confused or resentful when it comes time to transfer your legacy.

Introduce Your Heirs to Your Financial Advisor 

If one child is your executor, invite him or her to come along to your annual review. Or maybe another child is starting out on his or her career and could benefit from financial planning. These introductions will help everyone gain trust in the situation and in each other, ensuring your legacy endures.

With the proper planning and discussions, your wealth could flourish throughout many generations. Contact Redstone Brokerage Services today, and we’ll help you start these conversations.

This article was adapted from ourAspire! member newsletter. See all the articles here

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