Putting Family First: Intergenerational Wealth Transfer and Investment Planning

When parents discuss their expected wealth transfer with their children, there can be many benefits for the younger generation.

One example is a basis step up, which allows the value of an asset to be determined as the higher market value at the time of inheritance, not the value at which the party originally purchased the asset. This benefits individuals who have marketable securities with large amounts of built-in gain, as the tax on the built-up capital gain will be avoided. Another prevalent example of successful wealth transfer is through charitable contributions. This can be achieved through a charitable lead trust, which gives to charity while postponing a child’s inheritance until a certain age. However your family decides to proceed with wealth transfer plans, it is important to define your goals early and keep an open line of communication between you and your advisor in order to achieve family goals. This 9-page report outlines a six-step process which can be used as a guideline for families and advisors who are involved in intergenerational wealth planning. Should you need additional information, please call your Telemus Financial Life Advisor.