Wealth Transfers Need to be Done With Care and Open Communication With Heirs to Succeed
Feb 1, 2012
Dallas, TX (Law Firm Newswire) January 31, 2012 – A recent study showed that 70 percent of intergenerational wealth transfers fail, according to The Williams Group that researched this issue over a 20-year time span. The high failure rate was due to inadequate preparation or post-transition planning. If the heirs – including children and grandchildren – had been better prepared, they would have done better at keeping their wealth.
“What this shows is that properly allocating and protecting assets is crucial to maintaining your wealth,” said Dallas wealth management attorney and estate planning attorney John Hale, of The Hale Law Firm. “Wealth management helps a family prepare for wealth transfer, business succession, tax planning, and managing risk.”
The Williams’ Group study noted that successful transfers also occurred when heirs were prepared for “taking over the reins” of responsibility. This could include charitable endeavors, the family business, or overseeing family priorities. A family mission and well thought out strategy helped heirs maintain wealth.
“Times are changing. Today, patriarchs and matriarchs are more open to the idea of engaging in discussions with heirs regarding the scope and nature of their investments and their expectations regarding its future management. They are also learning the value of involving heirs in decision making to make sure they have the knowledge and experience to be good stewards,” said Hale. “It’s important that families seek experienced professional counsel as they begin the process.”
With the New Year, there is no better time to start communicating with family members about one’s wishes for their family and legacy. Professional guidance can make all the difference. .
John Hale is a Dallas estate planning lawyer and Dallas elder law attorney with The Hale Law Firm. To learn more about the Dallas elder law firm and Dallas estate planning, call 972.351.0000 or visit http://www.thehalelawfirm.com/.
The Hale Law Firm
100 Executive Court, Suite 3
Waxahachie, TX 75165