Monday, May 14, 2018
Minimizing estate taxes on the next generation's inheritance is not the only factor of estate planning that a parent or grandparent should consider. If the person planning their will has extensive assets to account for, there are practices to keep in mind.
Giving to Charity
Though there are tax deductions when a person gives to charity, the intangible benefits far outweigh them. When one donates a piece of their wealth to a charitable organization, they teach the next generation the importance of helping others less fortunate.
Giving to Loves Ones and Family
There is more to money than the idea of having money. Pressing upon children the noble effects of wealth other than "keeping up with the Joneses" is vital when laying out an estate plan. Equality is not always equal, and treating children different based upon their individual circumstances is completely appropriate.
Protecting Your Assets
Be honest with your estate and financial planners. If you believe one of your beneficiaries might not be a good steward of their own money, there is a high probability that they will not be responsible with their inheritance. Trusts and extra wording in a will may incentivize the rebellious child to mature.
See Ted Snow, What You Don’t Know About Estate Planning Will Cost You, Nightly Business Report, April 25, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.