[Podcast] Inheritance strategies to make your children richer, with Ken Raiss

Whether you've already built substantial wealth or are just starting on your financial journey, it's never too early or too late to start thinking about how you can pass on your wealth to the next generation.

Today Ken Raiss will share his insights and expertise on topics such as estate planning, trust structures, and tax implications of inheritance.

We'll discuss the pros and cons of different strategies, including gifting, testamentary trusts, and family trusts, and explore how these can be tailored to your specific needs and circumstances.

Join us as we dive into the world of wealth creation and inheritance planning with Ken.

What are the most important inheritance strategies?

There are two schools of thought when it comes to inheritances: SKI – Spend the Kids’ Inheritance – so you don’t have to worry about it.

Or pass it down to the next generation.

An interesting thing is that with increasing lifespans, more people who want to pass their wealth down to the next generations are choosing to do so while they’re still alive, so they can see their children and grandchildren enjoy and benefit from it.

This is an understandable action, but it’s important to realize that there are more tax implications in passing on wealth while you’re still alive, so it’s important to have a good estate plan.

The estate plan is more than just a will – there are many aspects to consider.

You should begin with the end in mind and consider what steps you have to take to get to that end.

Have a Family Discussion

By engaging family members and other beneficiaries in the process, you can help to ensure that everyone is on the same page regarding their inheritance and any other related matters.

This can make it easier to identify any potential issues or conflicts early on, and to address them before they become more serious.

Learn How to Use Trusts

A trust can be set up during a person’s lifetime or through a will.

The key benefit of a trust is that assets can be distributed to beneficiaries in a tax-effective way.

Income and capital gains can be streamed to beneficiaries who are in lower tax brackets, reducing overall tax liabilities.

Trusts can also provide asset protection by separating the legal ownership of assets from their beneficial ownership.

This can help protect assets from creditors, litigation, or divorce proceedings.

Consider What to Give Charities

Charitable giving is an important aspect of estate planning and can be a way to leave a lasting legacy while also reducing potential inheritance tax liabilities.

There are many ways to incorporate charitable giving into an estate plan, including:

• Establishing a charitable foundation
• Giving to an existing charity

Encourage Financial Responsibility in Beneficiaries

While it's natural to want to provide for one's family, there is a risk of creating a culture of dependency that can negatively impact the long-term financial well-being of the beneficiaries.

One effective way to encourage financial responsibility is to provide financial education to the beneficiaries.

This can involve teaching them basic financial concepts such as budgeting, saving, investing, and managing debt.

This knowledge can help them make informed decisions about their finances and avoid making costly mistakes.

Protect the Family Business

Planning for the transfer of family businesses is a crucial process that requires careful consideration and preparation and should ideally begin well ahead of the final transfer.

Successfully transferring ownership and management of a family business from one generation to the next, can be what ensures the business’s ongoing success and longevity.

Effective estate planning involves periodic reviews to take into account changing family dynamics, circumstances, finances, and law.

By adopting a range of inheritance strategies, people can ensure that they pass on their wealth in a way that optimizes outcomes for future generations.

Links and Resources:

Michael Yardney

Ken Raiss, director Metropole Wealth Advisory

Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here

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Some of our favourite quotes from the show:

“A longer life expectancy means that more of us are likely to give bequests during our lifetimes.” –Michael Yardney

“You don’t have to wait until you’re old to do this. In fact, you shouldn’t wait until you’re old to do this.” – Michael Yardney

“If you don’t know the right questions to ask, you lose out.” – Michael Yardney

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