In the financial services industry it's been talked about for quite some time of the coming trend of the massive amount of money that is going to be transferring hands in the coming years.
It's called the generational wealth transfer. Grandparents to their grandchildren, parents to their children, people to organizations they support in the coming years and decades. It’s estimated to be in the Trillions of dollars not just billions.
Some of it is in the form of money and investments, some in the form of property.
The big question is are your kids ready for it?
If you are the one doing the giving, do you think that the ones on the receiving end know how to manage it responsibly?
Are they ready for it or even want it? If you’re leaving shares in a business that you built up, are they capable of running that business or even want to run it or own it?
If you are on the receiving end of a possible inheritance, are you ready to receive and manage it well?
Are you ready for potential tax consequences and have the funds available for taxes that might be due?
Is the giving side going to let it pass upon their death and let it be an inheritance to their kids or are they going to sign over ownership while they're still alive?
Those can be two completely different and very expensive tax situations.
I see in practice that many people are unprepared for it because nobody's ever told them of how the process could or might work under different scenarios. Both on the giving side and the receiving side.
We as humans generally don’t like to talk about our end since it’s not a pleasant topic and so kick the proverbial can down the road.
Sometimes that leaves heirs with tax burdens that could have been avoided with some advance planning and remember – pay less tax, grow your wealth.
If you’ve decided it’s time to do some advance planning, giving or receiving lets set up an introductory call using the links below.
Even while still alive there could come a point in life where you are no longer allowed to make decisions for yourself anymore.
A past article a couple of years ago discussed a tax client who went into the hospital and the medical authorities decided she could no longer make her own decisions. She had kept putting off all the suggestions I was making to her and then it became too late.
The rest of her life she will be having to live with the decisions that others make for her including how her own money is spent and even where she will live for the rest of her life.
If you're ready to start planning for this event, contact me at email@example.com or 808-954-6402.
The information in this and other articles is intended to be educational in nature only. Not tax, legal or investment guidance for you specifically. Each person’s situation is unique and you must seek appropriate professional guidance that can address your unique situation.