Checklist for Facilitating Multigenerational Wealth Transfers

 

According to studies, 70% of a family’s wealth is lost by the end of the second generation, and 90% by the end of the third. To prevent becoming a statistic, you should educate and inform your extended family about your wealth transfer goals and the plan you’ve put in place to attain them.

Creating a Lasting Wealth Plan
You should consider communicating the following information to your family to ensure that your loved ones understand and will be prepared to carry out your wishes during a difficult time: 

  • Your goals and intentions for inheritances
  • A broad overview of your wealth
  • Your final wishes for burial, cremation, or  memorial services
  • Who you want to make decisions for you if you become unable to make them!Location of important documents: this should include how to access your digital assets such as social media, online bank accounts, and crypto assets
  • Your key advisors and their contact information: estate planning attorney, financial advisor, certified public accountant, insurance agent, spiritual advisor, etc.
  • Estate planning documents that you have created and the purpose each document serves:
    • Power of attorney: specifies who is responsible for managing your accounts and property if you are alive but unable to do so
    • Medical power of attorney: names of individuals who can make medical decisions on your behalf if you are unable to make them yourself
    • Advance directive or living will: clarifies your wishes regarding life-sustaining procedures
    • Revocable living trusts: avoid guardianship or conservatorship of your property while you live and avoid probate upon death
    • Health Insurance Portability and Accountability Act (HIPAA) authorization form: names the person you wish to have access to your protected health information
    • Pour-over will or last will and testament: a catch-all for money and property not transferred into your revocable living trust or by beneficiary designation before death
    • Irrevocable life insurance trust: removes life insurance from your taxable estate; provides immediate access to cash for loved ones’ needs, administration costs, and taxes
    • Other advanced estate planning tools: protect money and property from creditors, predators, outside influences, and ex-spouses; enable charitable giving; minimize taxes; create dynasty trusts

Conclusion
We can assist you with determining your wealth transfer goals, creating a plan to achieve these goals, and effectively communicating this information to your loved ones.

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