These tips can help you transfer your wealth in the future.

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.  

Transferring Wealth: 4 Tips to Keep in Mind

July 31, 2017

These tips can help you create a plan for transferring your wealth in the future.

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.

1. 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.
 

2. 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.

3. 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.

4. 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 our Aspire! member newsletter. See all the articles here

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*“Why 70% of wealth never transfers to a third generation.” Barclays Wealth Insights, Volume 14: The Transfer of Trust: Wealth and Succession in a Changing World.

This material should be used as helpful hints only. Each person’s situation is different. Consult your investment professional before making any decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advisory Services offered through LPL Financial, a Registered Investment Advisor. Insurance products offered through LPL Financial or its licensed affiliates.

Redstone Federal Credit Union and Redstone Brokerage Services are not registered broker/dealers and are not affiliated with LPL Financial. Redstone Federal Credit Union and Redstone Brokerage Services are affiliated but are separate entities. Investment products are not obligations of RFCU and are being offered and sold by dual employees on behalf of a third-party broker. RFCU does not warrant, guarantee, or insure any product or service offered by LPL or Redstone Brokerage Services. This material prepared by MFS®