Good Time to Focus on Wealth Transfer Strategies

We all have different ways of doing things. Some of us are savers, some spenders. Some of us enjoy being busy, others find enjoyment in relaxation. On an endless number of measures, we can be polar opposites in how we approach life.

As a result, we also tend to take a narrow view of those doing things different than we do. For instance, savers see spenders as short-sighted; spenders see savers as miserly.

Our approach to life reflects us as people and how we see the world. There is no right or wrong to it; it’s who we are.

However, the choices we make have consequences, and as long as we understand and accept the outcome, there is no harm in enjoying life the way you see fit.

In my job, I have the huge advantage of plentiful relationships. My family, my friends, and all my clients. This gives me some insight into things most people get only limited exposure to.

Take, for instance, estate transfers. Most people deal with this maybe once or twice in their lifetime. The death of our parents is most often when we have to settle an estate.

I always tell people facing this task that by the time it’s done, they will be an expert on the subject. But that expertise will be had at precisely the moment they will never use the knowledge again (except to tell friends how much work it was!).

Which brings me to another difference in how we do things… there are those who plan and those that don’t. Now, I won’t tell anyone to be something they’re not, but I will plead with those who don’t plan to force themselves to take the time to plan one thing: the transfer of their estate.

At the very least, everyone should have a Will.

According to a 2020 study conducted by caring.com, however, the number of people that have a written Will has fallen by 25% since 2017. Only one third of respondents to the caring.com survey indicated that they had a will or some other estate planning document.

Even if you don’t have a substantial list or amount of assets, a Will helps enormously in giving direction to your family and minimizing disputes after you are gone. It’s your “stuff” and if you don’t write down what you want done with it, they can only blame you.

The most straightforward Wills are written by a married couple whose children were from their marriage. The Will reads that when one passes, the other assumes everything. When the second spouse passes, the assets are split equally amongst the children.

Even in these simple circumstances, there can be things that need to be addressed. What happens to family property? What happens to family heirlooms that cannot be split equally? What if one of the children is incapable of handling an inheritance, who takes responsibility? What if there is a family business?

There are almost always family specific topics that are best addressed in a Will.

It gets more complex when there are second marriages and children from different marriages. How is a surviving spouse cared for while preserving assets for the children from an earlier marriage?

I recognize attorneys write Wills and advise on legal matters. That said, I have found most of the important questions surrounding estate planning for these more complex issues are financial, not legal.

I have constantly advised married clients to sit down and discuss exactly what they want to do with their estate. To come to an agreement before they see an attorney.

We assist by analyzing the financial implications of their wishes to ensure what they want to do is accomplished. We’ve seen what works, and we’ve seen what doesn’t.

An estate plan, as reflected in your Will, needs to protect all your beneficiary’s interests, and doing so takes careful financial planning. There are innumerable ways to do this, what is right for you depends on what you are trying to accomplish.

As your investment advisor it is our job to help you navigate these complex issues. At a minimum, it may be worth beginning the conversation about wealth transfer.

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Give me a call. I and my team would be happy to assist you in any way possible.