Posted on: 6 September 2017
Financial and estate planning can be a challenging topic no matter how much money you're dealing with, but when you're working with an investment specialist, there's a great opportunity to create some strong inheritance accounts for your loved ones. If you're trying to plan for sound financial futures, there are a few things that will help you do that securely. Here are a couple of things to think about.
Plan Your Investments Based On Your Values
When you're ready to create your investment plan, you need to be sure that how you invest is going to be reasonable for you. Part of what you need to consider is your own personal values, including charities you want to support. That way, you can factor all of those things into your investment plan and invest your money into things that represent your interests while you're growing your funds.
Think About How The Funds Should Be Distributed
There are two different factors to consider in terms of funds distribution. First, you need to think about the maturity of the beneficiaries. If you're facing the risk of giving an inheritance to someone who isn't mature enough to handle that much money at once, talk with your investment specialists about how to distribute the funds slowly or how to set limitations on the distribution.
You'll also want to consider the tax effects of the distribution. In some cases, it's in your best interest to alter your investments so that you get greater return now, allowing you to give your beneficiaries their funds when it's most tax-effective. This can save them significantly in the disbursement, which will allow them to make the most of their money. Your investment specialist can help you understand the tax effects of each disbursement option.
Work With Investment Companies Early
If you're just getting into your investment plans, the sooner you start, the better. By working on financial planning as early as possible, you'll have a longer time span for the investments to grow. That way, your percentage distribution for inheritance to each of your beneficiaries will be larger by the time the payments begin. Your investment consultants will even be able to help you determine the most aggressive investment options that fit your needs.
Address Potential Problems In Advance
Inheritance is a tricky thing to deal with among family members because there are often moments when expectations don't live up to reality and people get hurt feelings. The best way to avoid this is by sitting down with your beneficiaries right away and letting them know what your investments are and how they will be distributed. This is particularly important when you're going to be distributing different amounts among them, because it helps everyone understand what to expect.
Talk with your investment service and financial planner about what kinds of considerations will affect the distribution, including not only the tax issues but also the logistics of actually distributing the money. You want to be sure that everyone has access to the money when they should without finding any surprises along the way. After all, some inheritances will be subjected to the 'death tax' while smaller distributions before your death can be looked at as financial gifts that aren't affected by any of those concerns.
When you're investing your money to create an inheritance for your loved ones, this is the time to be as proactive as you possibly can. The more you can do now, the easier it gets for you to build the resources that you're hoping for. Talk with your investment professional and financial planner today for more information.Share