If you are like me, the past few weeks have been full of thoughts about what Christmas gifts you are buying and for whom. And, if you are like me, you are probably finding this task challenging – even for those family/friends you are closest to.
The giving and receiving of gifts is part of what makes this time of year fun and exciting, especially those of us that have younger children. Gifts from parents to children, or grandparents to grandchildren, are always excitedly received. You could call these intergenerational gifts – from an older generation to a younger. It may also be that you collaborate with other family members to provide a ‘certain’ gift that will be very memorable for the recipient?
Could you imagine taking as much time thinking about your estate planning as you do gift-giving? Especially on an intergeneration level – thinking outside the immediate family unit. Potentially thinking collaboratively about how their estates may be set up so as you can maximise the estate planning benefits across generations? It’s unlikely to make the highlights reel for Christmas Day conversation, but something that may talked about post-Christmas as you journey into a new year.
The next 10 to 20 years will see the largest intergenerational wealth transfer in history. Estimated to be around $3Billion, this transfer needs to be handled strategically and carefully. It offers an opportunity to greatly enhance the value and effectiveness of gifts that you give to future generations. It will also allow your loved ones to maximise the value of their inheritance.
One way to maximise the tax effectiveness of an estate is with the use of a Testamentary Discretionary Trust. This trust, established through a Will, enables assets to be held in trust and distributed tax effectively, especially where minor children are involved. In situations where there is a second (or subsequent) marriage, Testamentary Discretionary Trusts can protect assets and ensure that they are distributed to ‘blood’ relatives – if that is what is desired.
At Goldsborough, our Estate Planning for Life (EPFL) program enables you to explore these and many other options available. EPFL will provide you will the resources to understand your own personal situation and give you the tools to be able to speak with a legal professional about your Estate Planning needs. It also allows you to ‘centralise’ all of your personal information in a safe and secure manner that allows your executor(s) to know and understand everything there is to know about your financial position. This can make dealing with your estate less treacherous.
So, it may not be on Christmas Day, but over the holiday season, take the opportunity to speak with your parents (and parents, especially if you are grandparents, speak to your children) about your estate planning wishes. This might just be the time to get some collaborative intergenerational estate planning underway.
Goldsborough’s Estate Planning for Life program can facilitate that for you.