Heritage is a vital aspect in every family, and several proverbs are used to describe its lifespan, such as Clogs to clogs in three generations. According to these sayings, on most occasions, family assets get lost wholly by the time we are in the third generation. This is contributed by the neglect of the crucial element of successful inheritance.
The focus should be on both the givers and receivers of wealth, and great emphasis needs to be laid on preparing the heirs and crafting ways to take care of the family assets. A successful heritage game plan needs to encompass both parenting and money management techniques to overcome several family heritage challenges.
Choose investments wisely
By investing your inheritance, you allow it to grow. Get the help of a financial advisor to help you choose the best investment. Make sure you invest in a large basket of portfolios that will guarantee a substantial return over time. It is the smartest investment to make and helps you spread your eggs in different baskets to minimize risks.
A well-designed portfolio means serving multiple generations needs to grow, preserve capital, and generate several other investments. Expert attorneys at https://www.heritageelderlaw.com often advise the elderly to look for experience in the legal issues surrounding estate planning, estate administration, and other elder law issues with an uncertain future. As a giver of inheritance, estimate the amount you will give to your heirs by considering inflation and the time it takes to compound the investment.
Set up a trust
Setting up a trust is an ideal way of distributing assets that most families turn to, due to the many options available. They help minimize estate taxes, maintain privacy, and protect your estate from your heirs’ mistakes. If you have concerns about your heirs’ ability to take care of your estate, you should opt for a lifetime asset protection trust.
You can also choose an irrevocable trust that enables you to control your assets while alive and pass to beneficiaries as part of your estate. It is good always to leave a message to your heirs outlining stories behind family wealth and the family tenets to uphold, which they should pass to their generations. It is also advisable that you discuss the transfer of your property with your heirs while still alive.
Inheritance can be lost for several reasons like illness and taxes, thus requiring an estate planner. They will guide you on ways of taking care of your heritage and reduce individual costs that can diminish the value of your estate. Real estate attorneys will help you plan on managing your assets, assuring you that your tomorrow is sorted.
They will provide you will a list of services not limited to estates and probate, estate planning options, and protection of assets and Medicaid. The plan will ensure that you have a list of your beneficiaries, both primary and secondary. You will also be enlightened on probate laws that affect investment accounts and even draft a will.
Purchase long term care insurance
To protect your assets from the costs of catastrophic illness, you can purchase long term care insurance through an insurance agent or group plan with your employer. It is an easy way of protecting your retirement income and family heritage from the risk of unplanned and costly high medical bills. It will also minimize the chances of relying on Medicare covers requiring you to spend almost all your money on it to cater to long-term care. Besides, it reduces the burden that you may impose on your children and caregivers.
Obtain insurance cover for your assets
Some families may have substantial illiquid assets, and this may call for survivorship insurance cover. It is a sensible investment that will help settle estate taxes that fall due unexpectedly. This will enable your heirs to inherit the full value of your estate, and therefore they will not be forced to liquidate some of the assets to pay a tax bill. Also, annuities will allow you to trade in stock markets through fixed investments with life insurance components.
Parenting your heirs
In the current age, people find it difficult to talk about money and mortality to promote industriousness. Young heirs who suddenly come into a trust fund unprepared after a parent’s death or become of age can be completely derailed. Coaching is essential in ensuring that the heirs are not caught unawares and can take financial reins if anything happens to the wealth giver. It is better to be upfront about your wealth and the plans in place for the wealth. Besides, know how the wealth came to be, especially if it was created several generations ago.
Planning and care of your Heritage will go a long way in benefitting the second, third, and perhaps the fourth generation. Most of the wealthiest families in the world have their massive wealth squandered by future generations. Learning from benefactors of those families and following the above strategies will help in preserving your family heritage. If you become lucky enough to inherit some assets, it will only be fair to the family by being a good steward of your inheritance.