Posted on November 30, 2011 by thecomplexestate
Here is the definition by Merriam-Webster’s;
1. A : the state or condition of being entitled : right
B : a right to benefits specified especially by law or contract
2. : a government program providing benefits to members of a specified group; also : funds supporting or distributed by such a program
3: belief that one is deserving of or entitled to certain privileges
Here is the definition provided by a client shared by one of our advisors,
“Whatever I made during my lifetime, my children told me that they are entitled to it when I die.”
And that’s the truth.
Sad to say but we have created a sense of entitlement for our heirs and we have not heard the last of it. Advanced estate planning and business succession planning bring out the best and the worst in families. Divisions amongst family members can come at a time when planning needs are at their greatest. Overcoming this obstacle is a grand feat for anyone but there is hope.
Helping clients recognize early on that they can do something productive to ward off the entitlement issue can enhance and strengthen the client advisor relationship. It can also give clients a peace of mind knowing that there is a process that can help them navigate through difficult conversations.
A word of warning; the entitlement generation is not limited to the “Y”s. The economy has expanded it to the early age boomers and “X”ers as well.
Filed under: Advanced Estate Planning, advanced tax planning, Business Succession Planning, Business Transition Planning, Estate Planinng, High Net Worth | Tagged: Advanced Estate Planning, Business Succession Planning, Business Transition Planning, Entitlement Issues for Heirs, estate planning, Inheritance, Legacy Planning | Leave a Comment »
Posted on November 10, 2011 by thecomplexestate
Susan Raymond, EVP of Changing Our World, gave an excellent presentation at the AFP in Chicago on The Coming Gender Transition in Wealth. With the changes in the economy and the world as a whole, it is no wonder that women are more focused on planning than investing.
George Walper of the Spectrem Group states, “Planning must be much broader” and advisors should “help clients plan for overall life issues rather than asset allocation.”
A pearl of wisdom in an uncertain time.
Filed under: Advanced Estate Planning, Business Succession Planning, Business Transition Planning, Estate Planinng, high net worth tax planning | Tagged: Advanced Estate Planning, Business Succession Planning, Business Transition Planning, estate planning for women, HNW, Inheritance tax, Legacy Planning | Leave a Comment »
Posted on November 9, 2011 by thecomplexestate
It is indeed a ‘perfect storm’ for estate planning and no matter where you turn this is all you read about. Your high-net worth clients are reading about it too. However this does not mean that they will act on this opportunity.
During our recent InKnowVision technical webinar we addressed the uses of GRATs (Grantor Retained Annuity Trusts) in the advanced estate planning process. The use of GRATs are commonly used. Unless tested against or integrated with other advanced estate planning options, a high net worth client and their advising team may never really know the true benefit of this advanced estate planning strategy for the larger estate. In return, this could prove more costly and less effective than the desired result.
Advanced estate planning or high net worth tax planning as some call it, requires the security and peace of mind that comes with protecting cash flow or enhancing it . This can be the deciding factor whether or not a client can or will move forward.
As one commenter put it, “Fabulous idea! Where am I supposed to borrow the money to carry out your recommendations?
By starting with a comprehensive cash flow and balance sheet analysis you can be assured that not only will you find the money to carry out the recommendations, the high net worth client and their advising team will be well equipped to make wise choices in the planning process that can produce the desired results.
Revisiting where you start the advanced planning process can be a matter of life or death…. tax that is.
Filed under: Advanced Estate Planning, advanced tax planning, Business Succession Planning, Business Transition Planning, charitable planning, Estate Planinng, GRAT, High Net Worth, high net worth tax planning, Legacy Planning, philanthropy | Tagged: Advanced Estate Planning, Business Succession Planning, Business Transition Planning, charitable planning, estate planning, Estate Planning and Probate, Grantor Retained Annuity Trust, GRAT, high net worth, Inheritance tax | Leave a Comment »
Posted on November 1, 2011 by thecomplexestate
Not a week goes by where this isn’t some communication about the estate tax; the good, the bad and the ugly. It is tied to deficit reduction, holiday giving, history, and how to correctly “soak the rich”.
This communication has a direct impact on us. During the next three to four weeks InKnowVision will receive, more than likely, ten or more calls from advisors whose clients want to do year-end planning. If history repeats itself, then at least three of those will be planned for and implemented.
When was the last time you heard a business owner say something like this,
“I owe it to my 200(+) employees to keep them employed. I’ve already made it. All I want is enough to support my current lifestyle so that my wife and I can enjoy our final years together. Help me to create a plan to make this transition so I can feel great about its outcome.”
Owner, $80M manufacturing company
InKnowVision Case 2011
Times like these do not lend themselves nicely to “discretionary” advanced planning. There is too much at stake.
Filed under: Advanced Estate Planning, advanced tax planning, Business Succession Planning, Business Transition Planning, Estate Planinng, High Net Worth, high net worth tax planning, Legacy Planning | Tagged: Advanced Estate Planning, advanced tax planning, Business, Business Succession Planning, Business Transition Planning, estate planning, high net worth, Inheritance, Inheritance tax, Legacy Planning, Tax Planning | Leave a Comment »