Wealth transfer is passing assets to your loved ones effectively and efficiently. Effectively means you transfer your wealth to the loved ones you want in an appropriate method as to not ruin work ethic. It also can include asset protection for your loved ones.
Efficiently means you minimize income taxes, estate taxes and probate costs leaving more for your loved ones and the charitable causes that matter to you.
Common mistakes Financial Harvest Wealth Advisors see before clients receive help to optimize wealth transfer include:
- Improper beneficiaries, or beneficiaries misaligned with their current estate plan
- Failing to fully develop intentions for what they want their wealth to do beyond their passing
- Not considering financial maturity and liability threats of beneficiaries
- Failing to consider which assets to leave to charities and which to leave to loved ones
- Not updating estate plan due to tax reform sunset, SECURE Act, family changes, wealth changes, etc.
- Improper naming of successor trustees
- Poor timing of funding of charitable trusts to maximize estate tax savings