More money — more problems. At least that is the conclusion of a recent survey of wealthy Americans conducted by Barclays Wealth, although the survey results could certainly apply to even those of modest means in Nevada. Amongst its many findings was the revelation that nearly 25 percent of high-net-worth individuals do not trust their children to protect their inheritance.
The reasons to take the time to go through estate planning are many, but perhaps no reason ranks as high as to share one’s values and legacy with loved ones. Unfortunately, distrust of relatives and interfamilial conflicts often provoke concerns that one’s wealth will simply be frittered away on extravagant and unnecessary personal expenditures. Indeed, the survey found that 36 percent of wealthy Americans have experienced family disputes caused by wealth.
But through proper estate planning, any American may be able to ensure that his or her heirs wisely manage the wealth left to them. One possible vehicle to do this is through a charity. This way, values are passed down through the generations, and it gives the children and other heirs a chance to participate in investment management decisions meant to benefit others.
Fortunately, almost all wealthy Americans have a will in place (94%), and that will allow them to dictate the division of their wealth after they die. Yet, any Nevada resident may well benefit from creating a will. For example, family heirlooms and various other types of property can be passed down through a will. Many are often surprised by how much wealth they have as everything from the home, including personal items, are counted as part of the estate.
Source: IFAwebnews.com, “High net-worth individuals value help with wealth planning ‘complexity’,” Bob Graham, Nov. 15, 2011