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Multi-Generational Financial Planning

As families preserve and protect their assets over multiple generations, new strategies can be implemented. Strategies can be developed with guidance from an estate planning attorney to create Dynasty Trusts or Generation Skipping Transfer Tax Trusts (GSTT). GSTTs can be structured to protect the family assets from bankruptcy, law suits and the IRS, along with protecting these assets against failed marriages of heirs. These strategies can help lower the burden of any federal or state estate taxes.

It goes beyond the technically aspects of proper asset preservation. At Total Wealth Planning, we advise families on the best methods and vehicles for transitioning assets to children. In addition, we work to help prepare the next generation family members to be prepared both psychologically and practically to handle their inheritance. Families must think carefully about their transfer goals and the implications of wealth transfers on future generations.

Asset Distribution to Beneficiaries

Typically a family may leave an equal percentage of each particular asset among their children or other beneficiaries: IRA’s, 401k, joint and individual accounts, trusts, and Roth IRA’s. The tax implications of distributions from these assets can vary based on IRS guidelines, tax rate changes, and the beneficiaries own personal tax situation. Some assets may be suitable for one particular beneficiary over another. These tax implications may warrant a restructuring of how these particular assets are distributed to the respective beneficiaries.

When it comes to your family’s legacy, you’ll want a trusted financial advisor and partner.