Inter-Generational Wealth Transfers: Three Important Things
At Lake • Toback • DiDomenico, we know deciding on a plan to distribute your wealth is a very personal matter. Our experience with high net worth estates and our sensitivity to our clients’ needs and goals make our firm the optimal choice to help you incorporate intergenerational wealth transfer into your estate planning. As you consider how you would like to disburse your estate, here are three points to consider:
- Plan for all contingencies
Divorce can affect your plans to transfer wealth to a child or grandchild. Without proper planning, assets that you leave for one of your descendants may go to their spouse in the event of a divorce. Forming a trust that stipulates the beneficiary and proper disbursal can proactively handle potential issues.
- Follow through
It is not good enough to name the assets you want to include in your trust. Once you form a trust, the funding needs to be properly titled to it. Without that crucial second step, the accounts and investment holdings you intended to be in a trust are without its protection.
- Ensure validity
Whatever wealth transfer method you choose, it is crucial that you retain experienced legal counsel that will ensure the validity of your plan. Build your plan with the complete legal documentation your state requires.