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Inheriting Wealth -- and How Not To Lose It


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Inheriting Wealth comes with a mix & variety of feelings. The inheritance itself brings both "money" and "values". Without recognizing the second of these (values) the money is more likely to disappear. This brief discussion highlights the impact for 3 generations, and how values and wealth can survive and grow from one generation to the next.

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Inheriting Wealth -- and How Not To Lose It

  1. 1. Inheriting Wealth & How Not To Lose It Brian Weatherdon MA, CFP, CLU, CPCA Author, Speaker, Financial Planner. Aligning your Wealth & Life to overcome fears and secure your income, lifestyle, & comfort to age 105
  2. 2. Before continuing . . . . • Continuing into these slides signifies you accept this as a brief resource to facilitate financial discussions and decisions you would want to have among family and professional advisors. • • This series of presentations expresses key approaches to wealth regardless of its source (eg. business, pension, inheritance, winnings, direct savings). Here we highlight results you want to achieve for personal security, life income, and family estate. • • More resources & information at Also get the 5-star rated book (at Amazon, Kindle, and bookstores) “A Lifetime Of Wealth -- And How Not To Lose It”
  3. 3. Tic Tac Toe of Inheriting Wealth # Senior generation, source of inheritance. Will they spend it or still have it to give? Mid-generation, possible recipient of inheritance. Will they appreciate it? Will they spend it? Youngest generation: possible future recipients. Will they gain any benefit of their family’s wealth?
  4. 4. In the top row . . . # x • You are the “senior” generation. Your cohort will transfer estate values of $1Trillion, or on average $375,000. • Aside from the money, what personal “values” created this money? What work, creativity, beliefs & diligence are behind this money? • What legacy of “meaning” should this express for your family who inherits wealth from you?
  5. 5. In the middle row . . . # x • You are a “middle” generation. Your cohort may receive estate values of $1Trillion. • Can you describe the “values” that created this money? What work, how many years, what perseverance provided this money? • What are your own “values” with inheriting wealth? Is this a windfall? What will it mean?
  6. 6. In the bottom row . . . # x • You are a “young” generation. Your cohort will hear about a $1Trillion wealth transfer some people are inheriting from now to 2025. • • Yet 70% or more of grandparents and parents lack legal Wills, & have no written financial plan for retirement income, nor for their family estate. • Whatever you may inherit, how familiar are you with the values of earlier generations? What can you learn from them while they’re still here?
  7. 7. Potential conflicts of values . . . • Mom watched as her son inherited money from his father. She hoped he would reduce debt and upgrade the family home. • Son hadn’t considered the value & values of money. He treated this as a windfall, buying a dream car and an expensive vacation that totaled 3 years of his father’s work or nearly 15 years of his parents’ savings. Gone!
  8. 8. Conflict inheriting family business • One child was already managing the business 24/7. Another worked as an employee 9-to-5. A third lived a distance away with a distinct career and no relation to the business. • Do these children expect equal inheritance? What would “fair” look like? Perhaps it could be a fair distribution to each based on their differing risks and roles. What’s your view?
  9. 9. Concerns of the family cottage . . . • This is the #1 question many families raise in estate planning. What’s fair with the cottage? • Consider, who is using it? Who won’t use it? Is there perpetual space there for all to enjoy? • What about tax when owners pass away? And ongoing upkeep and property taxes? How will family share costs, and a cottage survive? Will insurance/savings secure results you want?
  10. 10. Often boils down to money ... • The coming $1Trillion wealth transfer from older to younger generations is measured with a “$” sign. Whether business, pension, or any other types of properties, it’s generally “$”. • Other PPTs in this series focus on the wealth people have in business, pension, and other assets. We can help secure seniors’ life income and the wealth transfer to their loved ones.
  11. 11. And family discussions . . . • “It’s easier not to discuss these things.” • “They’ll figure it out when I’m gone.” • NO’s best to discuss your desires, values and purposes while you’re here to explain. Or added grief, conflict & legal costs may ruin it all. • Heirs need and want guidance so they can feel they’re doing right with their inheritance.
  12. 12. Professionals to help you • Certified Financial Planner • Estate Lawyer and Business Attorney • Life Insurance specialist for liquidity at death • Retirement planning / investment specialist • Chartered Accountant: business, personal, estate • Family resolution specialist • Philanthropic consultant for charitable intents
  13. 13. Resources for Life Income and Inheritance • Life Income Mandates – for perpetual and increasing life income: And see chapter 5 of the book, esp page 96 ff. • Discussion on Inheriting Wealth starting page 69 in “A Lifetime Of Wealth – And How Not To Lose It.
  14. 14. Further resources: • Financial Stewardship for Life and Estate: • Exit Strategies from a Business -- Death and delay are poor strategies (video). Also see Beth’s story in book page 62. • Exit Strategies from a Pension to get the life you choose: Also see Marie’s story in the book, page 37.
  15. 15. And enjoy a whole Lifetime of Wealth • Web-learning to secure your future: • Get 5-star book (Amazon/Kindle/bookstores): “A Lifetime Of Wealth – And How Not To Lose It” ie=UTF8&qid=1380311791&sr=8-1&keywords=a+lifetime+of+wealth+-+and+how+not+to+lose+it