Inheritance & Wealth Transfer

Inheritance & Wealth Transfer

We help people who have inherited, are going to inherit, or are going to bestow assets to their heirs. We are known for our expertise in helping clients transfer wealth as well as helping clients manage sudden wealth due to an inheritance. If you are anticipating an inheritance in an amount that is making you uneasy or are feeling pressure because of the responsibility and are not sure what to do, we can help you get back in control and feeling confident and secure.

Our experience has proven that transferring wealth from one generation to the next can be a smooth and rewarding journey as long as it is well thought out and fully prepared for. Legacy & Estate Planning culminates in the creation of a family distribution strategy with associated documentation to clearly record the family’s vision, values, and governance in relation to the family wealth. Our clients and their families have found it helpful to address a wide range of issues and challenges, including but not limited to the following:

A few things to consider if you are transferring wealth to heirs

  1. When is the right time to pass wealth on?

  2. Who gets involved in the decision-making?

  3. How much do I give and to whom?

  4. How do we best prepare the next generation for the opportunities and challenges wealth brings?

  5. What if I’m the recipient of an estate?

People who have received an inheritance come to us looking for immediate clarity into what they have and a clear understanding of how to preserve and manage their wealth going forward. We have created an individualized process which addresses each area of their finances. There are many legal, financial, and tax implications surrounding an inheritance that we can help you address. We work closely with our client’s other tax and legal advisors, or if they don’t have other advisors, we can help them build their team and make sure all of the issues have been addressed.

A few things to consider if you are expecting an inheritance

  1. Relax, be patient, and take your time: If someone cared enough about you to leave you a sizable inheritance, then you’ll likely need time to grieve their loss. That is very important, and many of the major decisions regarding your inheritance can likely wait. You’ll likely be able to make more rational and clearheaded decisions once a little time has passed by.

  2. Don’t do it alone: There are so many laws, various options, and potential pitfalls. The knowledge and poise of an experienced team of financial, legal, and tax professionals can provide may be crucial.

  3. Uncle Sam may come to visit: If you’ve inherited an IRA, it is extremely important that you weigh the tax consequences of cashing out versus the need for immediate funds. Cashing out could mean you will have to pay full income tax rates on every single dollar you withdraw. This can greatly reduce the amount of your bequest. However, allowing the gains of the investment to continue to compound within the account, thus continuing to defer taxes, may have the opposite effect whereas it could increase the value of what you’ve inherited.

  4. Stay well informed: The estate laws have experienced a multitude of changes over the years. What you thought you knew may no longer be accurate. This is especially true regarding taxation on capital gains. The assistance of knowledgeable financial professionals may be more important than ever.

  5. Do what is right for you: All too often an inheritance is left in its original form. i.e. stock of a single company, ownership of an apartment building, etc. Perhaps even ownership in a company started by the person who bestowed the gift. While it’s natural for emotion to play a role in your decision making, it is almost important to remember that they left this gift to you, likely with the anticipation that you would do what is best for you going forward. What happens if the value of the stock takes a nose dive? The old adage “don’t put all your eggs in one basket” may be valuable words to live by. Don’t forget, this money is yours now. How it is invested, protected, donated, etc. needs to be in line with your needs and goals.

Where do we begin?

We start with your goals and what you want to do with your estate. We take the time to understand your motives, passions, and intentions. We may have the map, but you are the driver. For any destination there may be a limited number of routes. However, the various combinations are what create an abundance of choices. Vincent Private Wealth puts your goals into simple language and translates strategies into easy to understand plans. We explore the various possibilities with you and then we provide the information for you to clearly and concisely discuss with your family, attorney, and accountant.

What makes our approach unique?

This is what we do for our own families and beloved charities. We personally understand the unique nature of your legacy & estate planning. We not only seek long-term relationships with you, but also with your heirs. We genuinely strive to help you provide a wonderful future for your family and/or charities. Charitable interests have favorable tax laws. We understand how philanthropic contributions can enhance your estate and benefit society forever. We take great pride in offering objective opinions and guidance for the best strategies to implement for your specific estate goals. We pride ourselves on being innovative and unbiased, thus providing customized strategies. By its very nature, estate planning and wealth transfer are evolutionary. A living plan if you will. Personal goals change, family needs change, and charitable interests change. Forms of wealth certainly change, and tax laws are consistently changing. It’s imperative to understand that and go through the process. Our goal is to help you achieve optimal wealth transfer.

A few of the most common questions we help our clients answer

  • How will the money I receive from the inheritance affect my taxes?
  • I’m getting the inheritance in a trust. Does this mean I can’t use it how I wish?
  • The inheritance trust requires a co-trustee. What is their role?
  • How can I best integrate this new money into my existing assets?
  • I’d like to give away some of my inheritance. What’s the best way and how much can I afford to give?
  • Should I tell my kids about the inheritance, and if so, how much should they know?
  • What is the best way to invest the inheritance?
  • How do I leave enough assets to my kids so they can do anything, but not so much they can do nothing?
  • Do I have enough money to quit my job, buy a new house, move, etc.?