Many people fail to establish a smooth inheritance process for their wealth, and it puts their family fortune at risk when the inheritors have no idea how to administer the estate that is bestowed to them.
If the statistics are anything to go by, wealth creation is one of the most challenging things to achieve in life. That fact that there are only 33 billionaires in Australia is an indicator of the amount of effort it takes to build wealth that spans several generations.
Unfortunately, after working so hard to amass assets, most families lose over 70 percent of their wealth after passing it to their heirs. The loss drops to 90 percent by the time it makes it to the third generation. However, this doesn’t always have to be the case, notes a Townsville family lawyer.
Don’t make it a one-person show
Money remains a thorny issue even in the wealthy families. Most people choose not to involve their family in the running of their empire, and this proves to be a fatal mistake. In the event you become incapacitated, you put your entire estate at risk. Your household may not have the necessary skills or foresight to manage it, which could result in massive losses.
Rather than wait too long, involve your family members in the business from an early age. This way they take pride and delight in being part of the business which is essential in assuming ownership.
Seek professional help
Inheritance is a delicate process that involves a complex web of laws and taxes, especially in the absence of a will. Again, the probate process is lengthy and could place additional stress on the grieving family. To avoid all these setbacks, enlist the help of a legal expert and find a simple and satisfying solution.
Establishing trust is one of the best ways to look after the best interest of your loved ones. It also lets you customize the terms to suit your unique needs and situation. Trusts can also ensure that your heirs don’t burn through their inheritance with reckless abandon.
Inheritance remains a thorny issue in the sides of many families, especially when there are no clear guidelines. Instead of leaving everything until the last minute, you can ensure a smooth inheritance process and avoid a boatload of problems.