At MHPS., we represent all types of clients, regardless of the size of a person’s estate or their wealth. We know that being prepared for the future and providing for your family even after you’re gone is important. But we know when large estates and financial accounts are involved, it becomes difficult.
In a December 2019 Forbes article, it is estimated that 90% of affluent families lose their wealth by the third generation. How can that be? While many families will trust a law firm to help guide their rationale on creating trusts, sometimes estate planning is only half the battle.
How can you protect your wealth and continue your legacy, even after you are gone?
Preparing Your Heirs – Family Wealth Preservation
Like every family drama on prime-time television, most family wealth erodes at the first sign of distrust. In families where there is favoritism amongst siblings, it can lead to problems when it comes time to make financial decisions when you are no longer able to do so. How? In many cases, the children may not be adequately exposed to managing the family’s wealth or contributing to the business so it continues to flourish.
This may seem obvious but the reality is, many families do not take the proper financial planning steps to continue preserving and growing their family wealth. Some basic steps you can take to protect your assets and provide for your family include:
- Creating a will that explicitly details how you wish your estate to be divided and continued. You may want to plan for taxes and outside financial sources, you have that will be necessary for your family to know about.
- Establish a trust with an impartial trustee so your wealth can be distributed without an emotional burden on one family member.
- Be open with your family on your values so when you are gone, there is uniformity in how your legacy will continue on without debate.
- Meet with a trusted law firm to discuss an asset protection plan to minimize tax and transfer penalties.
Protect From Liability
Things happen and you may find yourself in a situation where your assets have been diminished. This can include a variety of things like ownership of property, divorce, negligence, and contractual liability not to mention the liability you may face as the head of your family business.
Any of these and more can impact your financial assets so it’s always best to look into trust and entity planning so your wealth continues for generations to come.
Do you have questions on multigenerational wealth preservation? Are you worried your family won’t be cared for when you pass? Don’t wait to develop your estate plans. The time is now to prepare for the future.
Contact Us If You’re Concerned With Family Wealth Preservation
MHPS is available to assist you with preparing for the future. Contact us to schedule an appointment.