As families grow and mature, we come to understand that not only each generation, but each member of the family, has unique needs and challenges. During these years, building smart estate plans and building portfolios that reflect our age and stage, can help avoid fourth quarter fumbles.
This is also when we begin to reflect on leaving a legacy and passing down to the next generation our valuables and our values. Experience has taught us that this process, like life itself, can be complicated and messy. But we’ve created a path to smooth the wealth transfer journey for families.
HOW WE PLAN YOUR LASTING LEGACY
Estate Planning
We want to make sure that nothing ends up in probate and that the tangible items and financial assets that we have worked so hard to secure will be transferred seamlessly to those we love. Planning for the orderly and tax-efficient transfer of assets can require a fair amount of thought, professional advice, and proper legal documentation.
Tax Planning
Inadequate tax planning and liquidity issues may force a “fire sale” of important assets, and lack of specificity may lead to conflicts between heirs.
Preparing Heirs
Some heirs could involuntarily lose control of the inheritance left them due to outside sources, or even their own actions. The reality is that many inheritors are not well prepared to make good financial decisions. Seeing a large pot of money could tempt them to splurge and overspend.
EDUCATING THE NEXT GENERATION
Without proper planning, the inheritance you pass on could easily dissolve, rather than providing your children and grandchildren with the legacy you’d envisioned. During these years, it’s important to educate younger family members who may need help setting goals, planning their careers and determining the right balance between saving, investing and paying down debt.
We often begin this process with a targeted financial plan, focusing on five-year and 10-year goals. This plan helps provide clarity and informs the action plans customized to the unique situations of each family member. Through this process, we help younger family members gain financial savvy and confidence.
If you are looking for smart ways to improve financial literacy and decision making across generations, while ensuring your values are embedded into the plan, Stearns Financial can help. We know what it takes to fully optimize and plan for the various twists and turns that come with living a rich and full life – including transferring your assets when it is clear you will no longer need them for your own health and enjoyment.
QUESTIONS WE ANSWER SO YOU CAN ENJOY YOUR FAMILY
How can you help guide my children and grandchildren given their needs are so different from my own?
How can I develop a family mission statement and generate meaningful conversations with my heirs?
Are there income and estate tax strategies that could be beneficial if used?
I already have a complex estate and financial plan. Can you provide a surgical “second opinion” to make sure my plan does what I think it will do?
What is the best way to transfer my financial assets, closely held family business, and/or my real estate?
Can you help us with a plan to share life lessons, ethics, memories, stories, customs and traditions?
How can I leave a legacy, beyond my next of kin, through smart gifting to favorite charities?
What is the best way to reduce friction within the family if I am no longer able to serve as matriarch or patriarch?
HOWEVER YOUR LIFE HAPPENS, WE’RE HERE FOR YOU
Life brings us changes whether we are ready for them or not. Some changes we plan for—growing up, moving out on our own, starting careers and families, buying a home … and then there are the unexpected changes that we don’t like to talk about: job loss, divorce, or death of a partner.
When life changes, money changes.
PAULA MCMILLAN
CFP®, CPA/PFS, CGMA
(336) 810-3612
pmcmillan@stearnsfinancial.com
RESOURCES FOR INTERGENERATIONAL ASSET TRANSFER
4th Quarter Fumbles: How Successful People Avoid Critical Mistakes Later in Life
This book highlights 25 key fumbles that have the greatest chance of ruining the last quarter of your life. Get ahead of these fumbles and take proactive action! Live a longer, happier, and healthier 4th quarter of life.
4th Quarter Champions: A Companion Workbook to Fourth Quarter Fumbles
This is a step-by-step guide to retiring or re-wiring for the next successful chapter of your life.
Mom Always Liked You Best: A Guide for Resolving Family Feuds, Inheritance Battles & Eldercare Crises
This practical guide for the millions of Americans currently struggling with adult family conflict is designed to give you the information and tools you need right now to achieve those mutual goals.