Inheritance Planning

One of the most important aspects a high-net-worth individual or business might want to consider in their wealth structuring partnership with a professional is the aspect of estate planning.

In many cases, these individuals are encouraged to structure the family assets for inheriting family members. Receiving the proper advice, including the possible legal aspects to consider, is crucial in this process.

As Dr Edgar Paltzer — a Switzerland-based attorney-at-law who provides legal advice on wealth structuring services — knows, equally as important is keeping communication open between the builder and the beneficiary of the wealth.

As important as communication may be, the reality is that many individuals overlook it during wealth structuring. The inability for families to communicate clearly over inheritance planning can result in serious issues, especially where assumptions are made over inheritance.

In some cases, individuals might plan not to split the estate equally between the intended beneficiaries, which can be upsetting to those left behind. This unequal division of wealth can result from various reasons too, some of which families must be ready to deal with to ensure a smooth process.

Open Dialogue

Having open conversations at an early stage is vital to reduce the risk of inheritance contestations later. For example, if individuals plan to make a sizable donation of their wealth to a charity upon their death, they are encouraged to let their family know of this plan. Such a conversation between the various generations involved can mitigate future disputes.

Involving the various relevant parties during the inheritance planning process is one way of ensuring that all needs are brought to the table and that the resulting plan finds common ground that everyone can live with.

Where conversations are difficult, bringing in a neutral third party can help, mainly to hear all views. The role of a third party can be beneficial if the family finds it difficult to be impartial or objective during the process.

Talk Often

Ideally, the ‘inheritance talk’ with younger family members should not wait until close to the end of an individual’s life. However, this discussion can often be daunting, even when done in earlier years.

One approach to mitigate this might be to make it a casual, everyday conversation that can make younger generations feel comfortable voicing their thoughts. Starting with simple concepts such as saving can also be a good idea for laying the groundwork before moving on to the more complex aspects of inheritance.