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Of Wealth And Responsibility in Virginia

Passing wealthThere is a responsibility that comes with wealth, and it does not end at death. It starts with proper planning. Hence, here are some fundamental, effective strategies that advisors can put to use to prevent wealth from dissipating through generations.

We pass along our wealth to the younger generations with the hope that it might ensure their wellbeing and happiness well after we are gone, perhaps for generations to come. Unfortunately, if the transfer is not handled thoughtfully, then a lifetime of work and thrift can disappear faster than the proverbial New York minute.

Thankfully, with the use of some powerful legal planning now, you can structure your wealth succession to preserve and protect the family wealth. The power of the trust planning is becoming more widely known, but it is also just as widely understood.  According to a recent Financial Advisor magazine article titled “Avoiding Wealth’s Death Spiral,” there are plenty of problems trust planning can help prevent.

For example, were you to make an “outright” gift or bequest to a particular family member, then the gift or bequest becomes available to the problems of that family member. Such problems include claims of creditors, civil suits, and the ubiquitous ex-spouses. The well-intentioned inheritance can simply drain away or be taken away with nothing left for other loved ones, present and future.

Depending on the wealth you have to transfer and your goals for your loved ones, present and future, a trust can be fashioned to make it all work. Indeed, you can have your custom-designed trust last from generation to generation (“perpetual” or “dynasty” trusts), name specific conditions for the release or investment of assets, and virtually any terms you can imagine.

However drafted, the trust is inherently powerful because it separates the trust assets from the liabilities of your beneficiaries, protecting and preserving the assets for your family. As the original article explains, trusts are legal tools that can integrate well into a family office arrangement or an overarching family wealth governance document.  The more there is to protect, the more planning that can and ought to be done to protect it from that unfortunate death spiral.

You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning

Reference: Financial Advisor (November 7, 2013) “Avoiding Wealth’s Death Spiral

 

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  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
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Coronavirus/Covid-19
Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.