It may not be the nicest thing to think about, but do you have a plan for how your fortune will be distributed once you pass away? No one likes to think about what will happen after they’ve left this world but it’s a necessity in modern society. After all, you need to think of how you want everything that you’ve worked for to be distributed and dispersed.
Which family members need trusts and living expenses? Who should get your art collection or prized classic cars? Which charities should get a sizable donation from you?
If you leave it up to the court, your legacy will be distributed in a way that in unlikely to please you or your heirs. It’s much better to take care of it before it’s too late.
What is a Wealth Succession Plan?
A wealth succession plan involves wealth structuring and planning to assist you in protecting and later redistributing your assets. A wealth succession plan can also include thorough instructions on your financial accounts and creating an ordered plan for succeeding them across several jurisdictions, if necessary.
Why You Need One
Here is a great example of why you need a wealth succession plan, laid out by financial planning consultant Richard Cayne of Meyer International:
“Let’s say you have $20 million in investments and savings. You’ve got that money spread between 10 different countries. This isn’t unusual since, when you have that much money, you would rarely have it all invested in one place. The issue is that when you pass away or have a medical emergency, it ends up being a mess to get it into the hands of your loved ones.”
That’s why you need a wealth succession plan.
“The sad thing is,” said Richard Cayne, “that people generally don’t think about having a plan until they see something like this happen to a friend or relative.”
What Could Happen If You Don’t Have One
Say you are in an accident or have a medical emergency that leaves you incapacitated. And say you don’t have a trust that incorporates all of your investments across several different jurisdictions. If you pass on your family will have to hire a different lawyer in each jurisdiction where you have investments. That lawyer will have to go through that jurisdiction’s specific legal process to make sure that your heirs are legally entitled to inherit those investments.
Some people think that happens automatically. It doesn’t. Those financial institutions don’t release money just because someone says they are your child or your spouse and are entitled. Those institutions have an obligation to do their due diligence.
This can be especially hard on your family since they will have to deal with all of these legal procedures at the time when they should be grieving. Isn’t it better to avoid a situation like this?
Do you think it’s time you finally sorted out your wealth succession plan? If so, give Richard Cayne at Meyer International a call today!
