Date: Mar 06TH, 2024

Why You Need Professional Guidance with Wealth Transfers

Today, much is written about the “great wealth transfer.” It refers to the $72 trillion worth of assets currently possessed by Americans from the Baby Boom generation, much of which will end up being transferred to heirs. With such a vast amount of money at stake, middle-aged and older Americans must create a plan that will maximize the amount of wealth they transfer by limiting taxes, errors, and unnecessary administrative costs. 

For this reason, it’s important to the success of a wealth transfer plan that experts (and not amateurs looking to make a quick buck) are consulted. Ideally, investors and individuals should seek a financial advisor, an estate planning attorney, and an accountant who can work together to craft the best possible plan based on their goals, their assets, their heirs, and their unique family needs. 

Utilize the Expertise of Estate Planning Attorneys

An estate planning attorney is a licensed professional specializing in retirement and wealth transfer issues (such as those involved in wills). It is this person’s job to help investors understand the estate planning process as well as the regulations and laws – both federal and state – that may affect the transfer, disbursement, and taxation of an estate.  

Collaborating with Wealth Management Professionals

Because estate planning is a complex process, it often involves collaborative work between several licensed professionals. Clients will work with not only an estate planner but also tax professionals and financial advisors, allowing them to create a customized estate plan based on the unique needs of the client. Some of the tasks these professionals can help with include preparing a will, identifying beneficiaries, establishing powers of attorney (POA), creating trusts to protect assets before and after death, reducing taxation to the legal minimum, and navigating the probate process. 

Is Estate Planning Only for the Rich?

This is a common misconception. Estate planning for wealth transfer is appropriate for anyone with assets including cash, investments, and real estate. It’s also not only for elderly individuals: it’s critical for anyone with dependents, such as minor children, family members with special needs, or aging parents who may need help.

Seek Advice from Financial Advisors

A financial advisor is invaluable for estate planning. These professionals will work closely with you and other professionals such as tax attorneys to determine your unique financial goals and needs and help you create a wealth transfer plan that will meet those needs. An experienced financial advisor will ensure that you have a comprehensive and legally binding plan in place that will eliminate confusion, conflict unnecessary costs, and taxation when the time comes to transfer your wealth. He or she will help you begin the process which may involve collecting all relevant financial documents related to assets. 

Arizona-based Prime Wealth Advisors is a full-service tax, retirement planning, estate, and wealth management firm that can craft a robust wealth protection plan that will cover you, your business, and your heirs. Call 623.77.PRIME or visit our website for more information.