It’s important that your personal wealth be maintained and passed on to future generations. Consider these questions:
- At what age will your children be able to access your wealth?
- Should you establish controls or restrictions for certain periods of time?
- Do you know who will run your business on your retirement?
- Transfer of wealth
You can see why it is important to create a thorough estate plan for the transfer of wealth to your heirs and a succession plan for your private company, particularly if your children are involved in the business.
High net worth individuals who do not have an estate plan can risk a significant reduction of estate assets by income taxes, probate fees, and other related costs.
A sound plan:
When planning for the intergenerational transfer of wealth, tax professionals should help you manage your current tax situation through, for example, income or capital gains splitting (where possible), and fulfill your tax reporting requirements on time and cost-effectively.