3 Steps to Transfer Your Wealth

Transcript

Hi, I'm Jason Vincent president and co-founder of Matco Financial today I want to talk about the three steps to transferring your wealth and building your family Legacy.

Let me frame this scenario for you you've been living comfortably for many years off of your Investments and you're pretty sure that your money is going to outlive you. Some friends and acquaintances have probably already passed away and you potentially have some health issues yourself. It's starting to be become real that you're in the seventh or eighth inning of your life cycle. Having been proactive all your life there are really three steps you need to to take right now.

Step one review your will and challenge yourself. I can't tell you how many times I hear two things from people sitting in front of me. First I hear, my family gets along great and there won't be any problems when I'm gone. The second thing I always hear is why do I need to worry I'm not here anyways. Both of those issues are fraught with problems. One thing we know for sure is that your wealth is going to get distributed it's just a matter of which stakeholders benefit and are you wishes achieved? Now who are your stakeholders? Family of course, government through taxes unfortunately, friends, lawyers, community, or charity. The more organized you are the higher probability your wishes are going to be achieved. What are some key discussion points that you should be having if you haven't already?

Have you set up a trust? Should you set up a trust? What is going to your children or grandchildren? Or even charity? Will my children be good stewards of my wealth? Do I want to protect my family wealth so it doesn't leave the family, which is a big issue. What does my estate tax liability look like? Can I minimize it? These are just some important questions and considerations that we should be talking about.

Step two review investment risk profile, investments, and structure of your finances. I've been a executive many many times this is the step that often gets overlooked and not prioritized but it needs to be, it's very important. We need to work on consolidating your investment accounts where possible. In particular, if you have a spouse we need to terminate all those investments that are peripheral, and yes, we all have those we don't want to talk about them, but we've got them. Some examples: some private holdings with no liquidity, this can take a number of years but the planning starts now. Investments that you know will be sold upon your death.

We need to review your assets with the view that not all of your assets are now invested for you. They're invested for the next generation. This may also be a great time to get your beneficiaries involved in some form. Remember that the goal is a seamless and successful transfer of wealth, not just a transfer of wealth, and I can assure you there is a difference. Start to simplify your structures it's taking you 50 years of building and structuring, so naturally, you don't think you're that complicated. But I can sure from an outsider you are. What does this look like? Wind down those personal corporations. Again, this might take a number of years on some tax planning.

We need to begin to aggressively manage your tax situation, and yes, that could be complicated process as well. It takes time, but remember, if the asset is taxable upon your death, there's really not much time for tax deferrals. And finally, step three, unless you really hate your executive and or your family and for that matter any other stakeholders. Do not procrastinate, don't leave your executive to clean up that beehive.

Remember what I said earlier, that I hear all the time my family gets along great. I can assure you they do not, in particular, when they're thrust into an emotionally charged situation, your death. With money on the line and an estate that is not well organized, it can be the smallest issue that starts a domino effect of mistrust, and it is. That piece of art that someone claims that you want for example. More often than not good intentions get thrown out the window and replaced with anger and hard feelings that are often irreparable for families. That's the terrible part about this.

Remember our goal, seamless and successful transfer of wealth. At Matco, our wealth program will enable you to achieve your transfer of wealth goal that likely includes other important partners, and I've mentioned them already. Accountants and lawyers with the skill set to help unwind some of those structures if any of this has garnered your attention and or you want to explore creating an optimal estate plan give me a call or send me a note.

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