“Do you really want to leave an inheritance?” I asked my client Fred in our meeting.
Fred was in his mid 70’s, owned a nice home in Brisbane and had surplus cash and assets. Enough to easily get him through until he was 95 years old.
It is a very pointed question and he was a little taken aback. He had never been asked this question before. The reality is, most people are too afraid to ask or even answer this.
Usually there is some expectation from family members that an inheritance will be left.
Fred has 3 middle aged kids and 8 grandchildren. He had worked very hard all his life owning his own businesses and liked the idea of being able to leave something behind.
Most people over their lifetime will grow their personal finances and own their own home which they occupy. Similar to Fred, they might have cash, investments or other assets.
Fred has the option of just live off his cash and other assets to get him through to age 95 as it provides the lifestyle he has become accustomed to. He can travel when he wants and lives a comfortable existence. The house won’t need to be sold (while he is around) and will ultimately become the inheritance for his children and grandchildren.
The question then becomes, how could we structure Fred’s remaining assets better while we are alive so that it can be better directed to the people we love when it is gone?
Putting conscious steps in place so we can dictate where it goes when Fred is no longer around. After all, Fred has no aspirations to die the richest man in the graveyard.
Most people think this is just a will.
Yes, you can do a lot with a will. But you can do a heck of a lot more using available structures such a family trust, companies or self managed superannuation funds.
Some planning and foresight now by Fred while he healthy and in his prime, will ensure a better outcome for the rest of the family in the future – oh, and he (or his beneficiaries) may save tax, costs and frustration by better structuring his assets earlier in life!
Talk to Rothgard about how you plan and structure your finances for many generations to come.
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