Proactive wealth transfer planning is about control and leverage. We believe that a successful estate distribution plan is one in which your heirs (and/or charity) receive as much as possible, and Uncle Same, as little as possible. But this requires some work.
Wealth Transfer Planning 4 of 6
Recently I wrote about managing sudden wealth – namely, an inheritance. While not everyone will be the heir to a sizable estate or be lucky enough to hit the lottery, many ARE planning to leave THEIR estate behind for loved ones. Many of my clients want to leave money to their kids. But a good portion of them have also expressed concerns, that their children may be ill-equipped to manage sudden wealth.
Financial plans tend to change when a client receives an inheritance. For some, they knew the passing of a loved one would mean an influx of wealth. For others, they were pleasantly surprised to know that they were the heir to an estate.
Regardless of the source, new considerations come with new wealth. So, here are a couple things to consider if you find yourself with new money on your balance sheet.