The success of generational wealth planning is dependent on honest and transparent communication across generations, while at the same time ensuring that family relations are protected, respected, and nurtured.
Wealth is seldom isolated to a single generation, and most who have amassed wealth have the desire to ensure that their assets are transferred to the next generation smoothly, efficiently and as equitably as possible. The increase in the number of blended, more complex family structures, together with the fact that many families are fractured around the globe, has added a layer of complexity when it comes to estate planning and developing a financial legacy for the next generation. More complex family structures also create the potential for greater family dynamics and idiosyncrasies that require sensitivity and a carefully considered approach to estate planning.
As a result of the above, we have noticed a marked increase in generational wealth planning, with more and more clients choosing to include their adult children in the estate planning process. Not only does this help in ensuring the effective transference of wealth from one generation to the other, but it also provides the next generation with deeper insight into how the wealth was created, the sacrifices that were made in the process, the intentions behind building the wealth, and the purpose for which the estate planner would like to see the wealth being used.
The success of generational wealth planning is dependent on honest and transparent communication across generations, while at the same time ensuring that family relations are protected, respected, and nurtured. Such communication can be challenging, particularly where families are separated around the world. Further, having members of the same family living in various parts of the world can give rise to jurisdictional issues which, if not attended to by an expert in the field, can give rise to delays in winding up an estate, unintentional tax consequences, and unforeseen costs.
Another key component of generational wealth planning is providing the next generation with the assurance that your retirement funding is adequate and that you will not become a financial burden on your adult children later in life. Not having insight into the retirement funding position of aged parents is a source of anxiety for many adult children, and effective generational planning should take steps to provide the next generation with comfort that sufficient and effective retirement funding is in place, including the costs of future medical care, assisted living and frail care, if required.
Our Financial Experts have been unpacking and providing practical advice on the best ways to preserve YOUR legacy. Contact Anglowealth to arrange your legacy planning.
Anglowealth is an Authorized Financial Service Provider (FSP Number: 46755)