If you’re looking to leave money behind for your children or loved ones, it’s best to secure your wealth even after you pass away. The best way to do this is through estate planning. Now, we understand that estate planning can be rather daunting, especially if you know close to nothing about it. To help you out, we thought it would be useful to put together a brief article on this subject. If this is something that you’re interested in learning more about, read on for a beginner’s guide to growing and protecting your wealth.
Create a Generational Plan
The process of creating a financial plan for your children involves two steps. First, you must create a will or trust, which establishes your intentions for how to maintain the wealth you’ve amassed over your lifetime. Second, you will need an outline for how to create an estate plan that clearly states how your beneficiaries should manage the flow of assets after your passing. You can take several steps now to lay the groundwork for this process.
Generational wealth planning is a bit different from designating gifts for your children and grandchildren through estate planning; instead of focusing on your family you know and love, it's about planning for future generations. Think about family members you may never meet! The point of generational wealth planning is to pass your assets down to them, but it can be hard to consider their needs alongside the family members you already know and love.
Communicate with Your Family
Make sure that your money lasts for generations rather than dissipating by taking the time to educate your family. Everyone must be on the same page in order to fulfill your wishes. Your children and grandchildren can be your best resource for this, so don’t make the mistake of thinking that you need to keep your money and values private. Set aside some time to discuss them with them so that they feel reassured and more confident. This is an ideal opportunity to involve your financial advisor. They will help you communicate your vision and answer any questions from your family.
Put Everything In Writing
Writing down your plans will clear up any potential doubts or confusion regarding your plans for the future. After you pass away, your heirs will be the ones who carry out your plans for wealth accumulation and distribution. Make sure that you specifically identify how the money should be spent, how it should be accessed and how it should be replenished. You may want your heirs to spend the money on higher education for children, starting their own businesses or something else that will help their family flourish for decades to come.
We hope this article proves to be useful when it comes to helping you gain a better understanding of how to approach estate planning. While it may seem tricky at first, the information that we’ve laid out above should help make things more manageable. Feel free to refer back to this guide if you ever need help with estate planning.
Make smart financial decisions with the help of Swell Financial Planning. We are a financial consultant in Queensland that aims to work with you as you learn more about investment, insurance, budgeting, cash flow and more. Consult with us today and secure your future tomorrow.