When someone passes on a large amount of wealth, planning options may open up. While you may only need one financial advisor, you may require the services of multiple professionals. Your family member may need an attorney with corporate background, while you might need a real estate professional. Your wealth transfer advisor should help you choose the best option. He or she can guide you through the steps necessary to transfer a significant amount of wealth. Here are some tips to consider when planning a wealth transfer:
The main goal of a Wealth Transfer is to ensure that beneficiaries receive the assets after the owner passes away. This process is often facilitated by various financial planning strategies, such as wills, trusts, and life insurance. Important considerations include the size of the estate, the beneficiaries, and taxation and interest rates. You may also want to consider the risks involved. For example, if you will be giving your property to your children, you should ensure the beneficiaries will receive the funds in the best way.
Millennials are banking on this Great Wealth Transfer. The Silent Generation and Baby Boomers will transfer anywhere from $30 trillion to 68 trillion in their lifetimes to their adult children. This will transform a new generation of consumers and clients. Businesses may not want to cash the check. They may be surprised to learn that they will be the ones deciding the future of their businesses. But the Great Wealth Transfer isn’t a bad thing if you plan ahead.
It’s important to remember that women are taking on more responsibility in the world of wealth transfers. They will inherit about 70 percent of the Great Wealth Transfer from baby boomers to their children. By 2030, women could control two-thirds of the nation’s wealth. That’s no small amount of money. By using these strategies, you will be well-prepared to survive the transition. And it’s important to plan ahead so that you can enjoy the fruits of your labor.
