While most U.S. adults age 18 and over have not prepared their estate or started planning for the transfer of assets, 81% of Americans above the age of 72, as well as 58% of baby boomers (aged between 53 and 71) do have estate planning documents. If you’re part of the large percentage that does not have these essential documents, however, it’s time to start planning for the future to ensure that your family will be financially secure for years down the line.
Sadly, 70% of family wealth is lost by the end of the second generation, as well as 90% being lost by the end of the third generation — this can be primarily attributed to neglecting to plan for the future in terms of transfer of assets, undergoing probate, and estate planning.
Here are some essential tips that can help you successfully pass on your wealth to your family and ensure that future generations are secure:
- Review your long-term goals — Before considering transferring any of your assets to anyone, you need to take a long, hard look at your individual and familial goals. If you’re starting a business, for instance, you might not have too much to offer at the time, but you could in a few years, so you need to plan accordingly.
- Communicate with your family often — Though these conversations can be difficult and uncomfortable, they are essential. Talk to your spouse and your children frequently about budgeting, investing, and future financial planning. Effective communication won’t just help you all get on the same page about the future, but it will help your family learn to focus on positive financial habits, as well.
- Consult with an experienced law firm — Since the probate process can be complicated, working with an experienced estate planning attorney is an essential part of future planning. These professionals can help you draft a will, communicate everything with your family, and review your estate plan whenever necessary.
If you want to learn more about the successful transfer of assets to your family, as well as work with an experienced estate planning process, give Duncan Legal PC a call right away.