When wealth transfer fails from one generation to the next, a leading cause is a lack of communication.
Most people do not want to plan for their legacy. In fact, 60% of adults do not have a will or living trust. Even among families with large estates, many adults do not talk about their finances with their children. A U.S. Trust survey of wealthy individuals found that more than half do not talk about their assets with family. While the majority believe establishing a formal set of principles to guide their legacy is important, only 10% have actually done it.
With trillions of dollars expected to move to the next generation in the coming years, estate planning is an important part of a comprehensive financial plan.
Discussing plans with spouses and other family members is key to a successful transfer of wealth. Chris Hennessey offers ideas for beginning this important dialogue.
- Host a family meeting to talk about family values and philanthropy
- Draft a letter to your spouse with a detailed list of contacts to call and key document information in the event of an emergency or end-of-life event.
For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam does not provide tax or legal advice.