The transfer of wealth from one generation to the next is a significant event. There are generally two paths that are taken. One is completely reactionary and the other is the result of careful, thoughtful planning and work. While it’s obvious that reactionary is the wrong path to take, in the super majority of cases it is in fact the path taken. Why?
Careful and thoughtful planning for the transition of a complex estate from one generation to the next requires effort. Typically, people don’t expend effort unless the alternative is some greater pain. It is unquestionable that there will be great pain to the second generation trying to transition the estate upon the passing of the first. One of the biggest sources of that pain is that the second generation is left in the dark, without a road map to the components of the estate. With parents deceased, lost are the best guides through the complex maze. Often the second generation will reach out to their parents’ lawyers or other advisors for help. But that help comes at a price, and the second generation has no point of reference to know whether the help they are paying for is adequate, much less complete.
So why not create the road map for your heirs today? It’s not because you don’t believe the effort is worthwhile. You worked hard to create your estate. You have no interest in seeing it squandered or mismanaged in transition. You know that a few days of work cataloging your estate isn’t too much to ask.
The problem is you just don’t want to put in the effort today. You figure that you are not going to die tomorrow; so tomorrow is as good as today. And it is because of this – simple procrastination – that most families fail to take the right path to wealth transfer. Tomorrow always seems like a better day to start . . . until there is no tomorrow.
Complex Interests believes that the best day to become a steward of the family’s estate is today. Schedule an appointment with one of our specialists to find out how to get started.