The Williams Group conducted a 20-year study of high wealth families to review the transfer of wealth from one generation to the next. The study found 70 percent of families lost their wealth by the second generation and 90 percent by the third. Surprisingly, the failure to hold onto the wealth did not occur during the transfer, but rather afterwards when heirs were unable to keep the money.
An opportunity to save money is a huge motivator to make a purchase, and it should also prompt you to action to safeguard your estate. Without legally binding estate plan including incapacity planning, you're leaving your assets open to a long and expensive conservator dispute in the event that you cannot administer your own financial, legal and health decisions.
Owning a small business is an emotional experience. The blood, sweat and tears you put into keeping your company afloat over an entire career create a bond that can make letting go difficult. If you are looking to pass on the business to the next generation, there are added emotions: Is my child ready to run this on their own? Have I properly prepared them for ownership?
Being named the trustee of a loved one's estate is an enormous responsibility and an incredible honor. When asked, you were happy to oblige, agreeing to follow their wishes without hesitation. You signed on the dotted line and felt a sense of pride, because you knew they were leaving their estate in capable hands.