Can your wealth last to your grand children?
Read this article:
One of the main reason amongst others why wealth does not last to third generation is once the children or grand children have access to the lump sum or assets, they tend to liquidate it and spend it. Once they start spending the wealth goes off very fast. I know a man in his mid thirties who inherited a few million. Unfortunately he lost it all within one week at the casino. So a way to prevent this is to set up a trust and let them do the distribution over several years. You would do this for assets that are not very liquid like real estate.
A superior far more effective and efficient to do this to get a large life insurance policy on yourself if your children is to be the beneficiary. If intended beneficiary is your grand children then the policy should be taken on your children. The greatest benefits from doing this is that 1) You only come up with a small percentage of the actual amount you want to distribute. Say you want to gift 5 million dollars, you only need to come up with 2 to3% of the actual amount.
2) The insurer can do the distribution for you over several yeras, hnec saving you the trustee fees.
3) All proceeds from insurance are tax free.
So want to have a review. Just email oypoon@ymail.com
Comments