A Guide to Wealth Transfer Planning

Wealth transfer planning includes devising a strategy to transfer assets to heirs and other beneficiaries. Life insurance, estate planning, wills and trusts are all tools that can be used to help facilitate the process. Proper planning can help mitigate surprises if you or your spouse pass away unexpectedly. It can also help protect your assets and help ensure they are distributed according to your wishes.

Before you begin to implement your wealth transfer planning strategy, it is important to properly plan your own financial needs for the remainder of your life. This should include all of your expenses including healthcare, taxes and liability payments. Depending on your health and life expectancy, funding for these expenses may be needed for more than 30 years. Once you have planned to fund your expenses, you can begin to plan how you would like to distribute your assets after your death.

A good place to start will be to make a detailed list of the family members and others who will be a part of your plans. Next, it is important to consider what your objectives are when transferring your assets. This can include who will receive which assets and when. Confirm that your will and estate planning documents reflect your wishes, and consider setting up a trust if necessary. Are there any charitable causes that are important to you and your family? Do you want to help others with expenses like college funding for grandchildren? Who do you want to be in charge of making decisions if you are somehow incapacitated? Discussing your plan with family and loved ones can ensure everyone is on the same page and can help avoid uncomfortable surprises.

Make a detailed list of all of your assets and liabilities. This will include financial accounts, real estate, business interests and other assets as well as mortgages and other debts you have. Be sure your beneficiary designations reflect your current wishes. Consider meeting with an estate planning attorney and ensure all of your legal documents are in order. This can include your will, trust, power of attorney and several other supporting legal documents that will provide clear instructions in the event of your incapacity or death. Once your estate planning documents have been reviewed and signed, the plan can be implemented. Remember to store your documents in a safe place that your loved ones will have access to in the event of an emergency.

Once your plan is in place, it is a good idea to review it and go over the details with your family and loved ones. This is a personal decision, but it can help everyone better understand what your intentions are for your estate. You should review your estate planning documents at least every five to 10 years to ensure they continue to reflect your wishes.