As recently as 50 years ago on family farms and ranches across America, it was common to see two or even three generations actively involved in running the enterprise.
This checklist was created to help you organize your affairs. Your individual situation will dictate other items which may need to be addressed. We suggest discussing your plans with the executor of your will as well as consulting with your legal, financial, and tax advisors. The time to get these professionals involved is before an event occurs – plan ahead. If you wait, chances are the lack of preparation may cost you and your heirs more money, time, and frustration.
Talking with your children about disability and/or death can be a difficult task for most people. Parents spend the better part of their financial lives working, saving and planning only to end up avoiding proper communication and planning with their children on the topic of death. Parents often do not discuss their estate plans with adult children out of fear that this will only cause tension and improper incentives. But in my experience as an attorney and financial advisor, the most successful planning results come from good communication.
Losing a spouse or partner is a dramatic and emotional experience that can have a serious impact on the financial health of the surviving spouse. Financial planning and investment management needs vary dramatically depending on what stage of life the surviving spouse is in. Over the years, we have worked with many clients who have unfortunately lost spouses at all stages of life. Death is not universal, nor are the financial steps to take in its wake.
“Atlas through hard constraint upholds the wide heaven with unwearying head and arms.” – Hesiod
There’s an often-quoted maxim regarding inherited wealth: “The first generation makes it; the second generation builds it; the third generation blows it.” Indeed, uncertainties around the next generation’s ability to exercise wise stewardship of family wealth have led to the drafting of many a trust document, many clauses in wills, and much misgiving in those who created or built the legacy that will be entrusted to those who may or may not be ready.
During this holiday season, you may have some anticipated plans to spend quality time with your loved ones. The last thing that may be on your mind is discussing finances and your future care needs with your family over dinner. But the togetherness that the holidays bring could be a good opportunity to introduce them to important aspects of your financial life, as well as theirs in the future.
No two people are alike, and no two families are alike. More and more often, families are being created and shaped in nontraditional ways and continue to change the way we think of families, such as single-parent families, blended families, same-sex households and children as caregivers for aging parents. In a way, nontraditional families are more the norm than the exception.
As more and more boomers reach retirement age, trillions of dollars in family wealth are going to be transferred from older to younger generations. But many heirs (and their advisors) are not prepared.
There are several issues that should be addressed quickly whether your expected windfall is from an inheritance, a business sale, a large bonus, or winning the lottery. Â Below, we share five crucial steps:
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