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wealth

FAMILY WEALTH TRANSITION

Transferring assets from one generation to the next can be a smooth process with proper planning.

Imagine you ask a travel agent and a travel guide to plan the
perfect vacation for you. They set out creating your ideal trip;
however, they never actually communicate the plans to you.
Without proper communication of the who, what, where, when
and why, how will the trip be successfully executed? The same
goes for successful communication of an estate plan and the
wishes of the person in control of the estate.
The following checklist provides a starting point for assessing
if your family is prepared. Careful preparation, communication
and clear goals will significantly enhance the success of your
family wealth transition.

PREPAREDNESS CHECKLIST
◆ Our family has an estate plan in place and we cre-
ated the necessary legal documents to carry out the
plan.
◆ Our estate planning documents are periodically
reviewed and are up-to-date.
◆ Our financial plan has been completed and is up-to-
date.
HOLLYWOOD MOVIES USUALLY PORTRAY the reading of
the will as a family gathering around in suspense, anxiety and ◆ We communicated our estate plan to our family, to
agony. You’ve seen it in films or in commercials on television. the designated beneficiaries and to the parties respon-
Lucky family members win the prize inheritance and are in sible for carrying out the wishes of our plan.
celebration, while others are left out of the will, completely
forgotten and with nothing. This scene of the estate plan details ◆ Our family understands the basic goals we aim to
being revealed after death can create some potential problems, accomplish with our financial and estate plans.
and in an ideal world should never happen. ◆ Our family continues to have ongoing communica-
For most people, an estate plan includes items such as a basic tions about topics of importance to the family (financial
will, a trust, durable power of attorney documents and medical plans, estate plans, family history, family values).
or health care directives. These documents are packaged togeth-
er for the client, including instructions for designating property
correctly and best practices for safekeeping of the documents. If you checked off all six items on the checklist, most likely
Ideally, both client and advisor are happy; the client knows his or your estate plan is in place and you have a high probability of
her advisor understands the client’s needs and the advisor knows a successful transition to the next generation. Congratulations!
the client now has the appropriate documents in place. However, any unchecked items provide a starting point for
Ideally. improving your plan.
However, successful wealth transfers must answer these ques- With proper planning, transferring wealth from one genera-
tions: tion to the next can be a smooth process. The basic documents
How do we communicate the strategy to those responsible for that should be in place before anything else are the will and
carrying out the wishes of the client? trust documents. However, contrary to what many believe, it PHOTO: © AMMENTORP | DREAMSTIME
How do we prepare those beneficiaries and responsible does not end here. Open communication, including periodic
individuals for implementing the plan? family meetings, keeping everything up to date and all parties
When is the appropriate time to communicate this strategy to understanding their roles and responsibilities are the keys to
the beneficiaries? success and, frankly, can make or break an estate plan.

30 globaltravelerusa.com FEBRUARY 2018