Transition Planning: Passing Your Wealth To The Next Generation

Over the next 25 years, North Americans are expected to inherit $11 trillion in assets from their parents. This transfer may not be easy. If assets are transferred without much thought on how to structure this transfer, a large portion of these assets may be diminished through taxes and fees. The key to preserving family assets is to use a process that passes these assets efficiently. We call this process transition planning.

Transition planning allows you to take care of your obligations and wishes as you see fit, rather than the way the government deems appropriate. In particular, a transition plan can help you answer four important questions:

Do I Have a Plan To Take Care of My Dependents?

Preparing a will, choosing an executor, and appointing guardians for your children is a good start. But you must also provide for your family's financial future as well. A life insurance plan can help. It's an excellent way to ensure that your family has a source of ready funds just when they need it most. Not sure if you have the coverage you need? Ask us for an insurance needs analysis.

What Will My Family's Future Look Like After I'm Gone?

Why spend your whole life building assets if you end up giving half to the government after you pass on? That's what would happen without a transition plan. By examining estate fees and taxes now (and arranging funding for these expenses), we can take steps to preserve your wealth for your heirs.

Have I Prepared a Business Succession Plan?

Ask yourself: what would happen to your business if you died suddenly? Or if you suffered a serious disability? How long would it take for your family to extract money from the company? A business succession plan can provide you with considerable peace of mind, knowing your company and your family can continue to thrive if you're unable to continue with the business. I have an informative brochure that provides an overview of the succession planning strategies. Call for your copy today!

Have I Discussed My Plan With My Family?

Communication is crucial to the success of your transition plan. Review your plan with your family so there won't be any surprises later. I always recommend clients bring their beneficiaries in so that I can meet them in case we need to work together in the future. Remember, preparation is half the battle.

Transition planning encompasses more than just the distribution of your estate. It also deals with providing for your current needs. This means having a comprehensive plan for risk management (such as disability coverage, life insurance and critical illness insurance), tax planning, and investments.

Times of uncertainty provide the perfect opportunity to revisit your transition plan. We offer a wide variety of transition planning services, and a lot of information on the topic. So call today I'd be happy to help you get this process started!