Are your Heirs Prepared for Their Inheritance?

If you’re anything like the majority of our clients, you already have an estate plan in place. This likely covers all the general aspects of passing your wealth onto your heirs. It details investments, savings, totals, and all the other items that require crossing the “t’s” and dotting the “i’s”. Yet we believe there are many important areas an estate plan does not cover. It boils down to one simple question: Your estate plan is in place, but are your heirs prepared?

The largest wealth transfer in history is currently taking place: approximately $41 trillion or more than 120,000 estates each year valued at over $1 million each. Yet only about 30% of these transfers will be successful. According to the Institute for Preparing Heirs about 85% of these transfers go awry due to a lack of communication. We believe communication is essential to create the trust necessary for a successful transfer of wealth. Furthermore, it is crucial if you desire to share with your children more than your account balances.

An estate plan does very little to teach your children the value of a dollar. It doesn’t address the need for giving back to a community or cause. It won’t speak of the value of saving, or preserving wealth for their children one day. These intangibles are the very essence of Preparing Heirs. This is why we will be offering this service to our clients very soon.

Our definition of a successful transfer of wealth is simple: When an heir is capable of receiving and managing their assets in a manner that fosters and develops their lifetime goals. Now if only the process was that simple! One study conducted by the Institute for Preparing Heirs surveyed over 3000 affluent families, found that the biggest concern for parents was the impact of sudden wealth upon their heirs, and the benefits or pitfalls that might occur. Specifically they were concerned money might “ruin” their heirs. Sixty-five percent of respondents were worried their wealth will put too much emphasis on material things.

If you share these concerns, we can help.

It begins with a simple conversation. Using tools and specialized discussions, we will work to overcome the taboo topic of discussing money among family members, working with you to ensure we cover only the areas you’d like to discuss. Our goal is to prepare your family for all the intangibles not covered in an estate plan, but so vital for a successful transfer of wealth. We begin by creating awareness among your family, educating them about the need for this conversation to ensure long-term stability and family harmony. We then assess your family’s situation, identifying strengths and opportunities for growth and increased communication. Finally we take action, connecting with your other advisors and family members while educating you to facilitate some important conversations on your own.

We are thrilled to offer this new service to our clients. If you’re interested in participating or have questions about the process, please let us know. There are a very limited number of spots available and they will be offered on a first-come first-served basis.

Thank you for being a client of Prosperion Financial Advisors.