Prepare your heirs. Your legacy starts now.
You have achieved a certain level of success, and you understand that the privileges of significant wealth come with challenges in equal measure. Among those challenges is successfully passing your wealth and values on to the next generation. Without careful planning, almost 70% of heirs’ money, assets and family harmony disappear after an estate transition.
You have the opportunity – while you’re living – to set your loved ones up for success, so to speak. A chance for open, honest communication, and for nurturing future-focused conversations about values, charitable giving and diligent stewardship. Estate planning is more than transferring money. It’s about what that money can do for future generations, and making room for your family to grow closer, stronger – to prosper. The conversations may be sensitive, but they’ll be worthwhile.
DON’T LET YOUR HEIR DOWN
Research and data clearly demonstrate that lack of transparency or a shared family vision can adversely impact the rising generation. To stack the odds in your favor, you will need to create a framework to help your heirs flourish, strengthening family unity. Family meetings can help solidify decision-making and wealth governance – providing a structure that supports and sparks meaningful, multigenerational dialogue.
Each generation will have different ideas about how to use money to benefit their lives and those around them. While you may not always agree with your kids, give them a say in how the family wealth should be used. That can help connect generations and shape your family’s future while promoting openness and family harmony. If nothing else, family discussions will lend incredible insight into each other’s values and temperaments and will give you an opening to understand them better.
CREATE A ROAD MAP
Support whatever conversations you have with documentation, storing legal paperwork, passwords, insurance policies, titles and deeds with a trusted attorney, financial advisor or in a secure online portal. Don’t forget to include the contact information of your estate planning team in case your heirs need it down the line. Understand that wealth’s privileges and complexities deserve, even demand, thoughtful preparation and honest, ongoing conversations. Circumstances can and will change, as should your estate plan. Work with your financial advisor to find fair answers to important questions, establish trust and open dialogue, and provide the gift of opportunity to those who matter most.
Information in this article is from sources believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, BLA Private Wealth, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member Canadian Investor Protection Fund.
