From Kiplinger · · 1m 40s
Estate Planning Mistakes to Avoid
Five estate planning errors could cost you your wealth transfer.
In brief
Five estate planning errors could cost you your wealth transfer. Most Americans neglect estate planning, risking family disputes and lost wealth by the third generation. Originally reported by Kiplinger.
Wealth Transfer Is Already Happening
Trillions of dollars are expected to pass from one generation to the next over coming decades.
Most Americans Ignore Wealth Planning
Most Americans spend more time planning family vacations than their personal finances.
70% of Wealth Lost by Second Generation
Research from the Williams Group shows 70% of wealthy families lose wealth by the second generation.
90% of Wealth Lost by Third Generation
Research from the Williams Group shows 90% of wealthy families lose wealth by the third generation.
Heirs Need Financial Confidence
Heirs are better prepared when they develop skills independent of family wealth.
Few Discuss Money with Children
More than half of parents ages 55 and older rarely or never discuss money with their children.
Failing to Formalize Your Plan
About half of high-net-worth individuals don't have a will or trust.
Asset Protection Is Essential
Asset protection shields wealth from lawsuits and creditors.
Irrevocable Trusts Reduce Tax Burden
Irrevocable trusts can shield assets from lawsuits and lower estate and income taxes.
Waiting Until Death for Impact
Some wealth transfers happen while you're still alive to see benefits.
Transferring Wealth While Alive
Parents can see how their money benefits offspring while alive.
Teamwork for Successful Transfers
Financial advisers, attorneys and tax professionals should work together.
What matters most
Most Americans neglect estate planning, risking family disputes and lost wealth by the third generation.
