Protect What You’ve Built and Plan for What’s Next: Estate Planning & Intergenerational Wealth Transfers with James Simon, CPA, CFP
Estate planning can be a complicated and emotional part of your financial plan. James Simon, CPA, CFP® brings some clarity to the topic in his webinar on intergenerational wealth transfers.
While it’s true that some aspects of an estate plan may only come into play after a death, that doesn’t mean you should wait until old age to make a plan. Other parts of estate planning, such as power of attorney and healthcare proxy, may be triggered earlier than you expect.
High-net-worth individuals and multi-generational families in particular can encounter complicated wealth, inheritance, and estate dynamics, necessitating a concrete plan to ensure assets transfer as intended.
If you fall into any of these categories, it may be time to consider making an estate plan:
Recently widowed individuals managing inherited assets
Individuals anticipating or receiving significant inheritances
Blended families balancing multiple generations
Parents structuring multi-generational wealth transfer
Individuals concerned about beneficiary alignment and estate clarity
Business owners approaching or post-liquidity events
When we say “wealth event,” we mean a dramatic change to your financial picture. Think of a business sale, a divorce, or an unexpected financial windfall. Time can be of the essence after a wealth event, yet undue speed can cause mistakes that can drastically change the intended flow of assets. This is particularly true with inheritance.
Inheriting money comes with many considerations: distribution schedules, tax obligations, conversion strategies, and more. There are also the emotional and personal considerations, as your family picture may have changed significantly with your inheritance.
That’s why the first move after inheriting is to take accurate stock of how your financial situation has changed and refer back to your family’s estate plan. What will the distribution schedule look like? Do the IRA and life insurance beneficiaries align with the will? How might your earnings influence your tax obligations?
Hasty or emotional decisions can create tax inefficiencies and interrupt the intended flow of assets. A strong estate plan anticipates these considerations and prepares you to move strategically once the inheritance occurs.
Intergenerational wealth transfers can become even more complicated when involving multi-generational families. Communication may become tangled, and outdated documents can create unintended outcomes. This is especially true when a family structure changes, such as after a remarriage.
When it comes to estate planning for multi-generational families, choosing the right trustee or executor can be key. This is the person or institution responsible for managing and settling the deceased person’s estate. In large or multi-generational families, this designated decision-maker can simplify the chain of communication and establish areas of responsibility so the entire family remains aligned on the deceased’s wishes.
Reducing the Risk of Family Conflict
Estate planning can often cause uncertainty and conflict among family members. Not only can the finances involved be complicated and changeable, but the personal side of estate planning and inheritance can exact a heavy emotional toll.
To make estate planning feel organized, manageable, and achievable, try framing your estate planning around these questions:
“Have we reviewed this recently?”
“Are we still aligned on the intended outcomes?”
“Do my documents reflect these wishes today?”
Importantly, estate planning doesn’t need to happen only within the family. Coordination between an attorney, CPA, and financial advisor can clarify some of the more complex or opaque areas of estate planning and provide relief and guidance for your family.
When to Call a Financial Advisor & What to Expect
There are many scenarios in which it would make sense to seek the services of a financial advisor. When it comes to estate planning, these scenarios include:
You’ve recently inherited assets
You expect to inherit in the coming years
You’ve remarried
Your beneficiaries haven’t been reviewed recently
If you fall into any of these categories, it may be beneficial to get the perspective of a fiduciary financial advisor. An initial conversation with a financial advisor regarding estate planning will probably entail some or all of the following:
Clarifying family goals and long-term intentions
Reviewing documents, titling, and beneficiary designations
Identifying potential misalignment
Coordinating with estate attorneys and tax professionals
It may be possible that there are no immediate changes required for your estate plan. A financial advisor can identify the things you are doing well and prepare your plan to evolve as you and your family age.
You’ve realized you need some help with your estate planning—now what? Get matched to fiduciary financial advisors who can help you address your specific financial situation with our Find an Advisor quiz.
Disclaimer: Zoe Financial, Inc. (“Zoe Financial”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisors through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions.
Renew Wealth Management Disclosure: This webinar and article are not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.
