By David M. Kopyc, CRPC
The largest wealth transfer in the history of mankind will take place over the next three decades. It is estimated to be in excess of 80 trillion dollars. How will the Gen X and millennials manage this type of wealth and will they be able to work through the options they will need to take to protect these assets and minimize tax liability.
This transfer of wealth will take decades to play out, so most families will have time to take action to develop a plan to maximize their wealth transfer possibly for generations to come. It is critical to have discussions on how this wealth can be utilized for all the future events that will take place in your family’s lives (weddings, college education, charitable intent, future income sources, etc.).
Regardless how big your pot of gold may be, you need to develop an estate plan. A simple Will and beneficiary forms are important, but most of us will probably need to have a Trust or multiple Trusts. Probate is expensive and if you want your money to follow your bloodline, there are options and strategies to take to accomplish this.
There are too many situations with families that ended badly because there was a lack of communication between the family members. It is critical that heirs have open, honest discussions about what they would like from the estate so conflicts do not arise. While these conversations may be difficult and uncomfortable, it’s better to have your wishes known so there is absolutely no misunderstanding.
