Explore TAG Advisory Services’s latest blog posts, expert advice, news, and commentary. Learn more about the features of our innovative blog here.
Because money is often a touchy subject, families who’ve accumulated wealth and built enterprises likely don’t spend enough time considering how to discuss money with their children. To further complicate the situation, older and younger generations often have different questions and concerns about their own financial futures. This disparity—and the challenge of clear communication between generations and each side seeing the other’s concerns, needs, and perspectives—often causes issues during the transition of a family business.
This article discusses when and how to have these conversations, recommending planning a series of conversations, each with a different focus, in an environment where all parties feel comfortable sharing their perceptions and questions.
At TAG, we are often asked to advise on Transgenerational Wealth™ management, including Trust and Estate Planning and other wealth transfer strategies to directly benefit their grandchildren. Some clients are looking for ways to bypass their children altogether, while others are eager to provide monetary support to their grandchildren, especially while they’re still around to see them benefit from it.
The government doesn’t look kindly on gifts to grandchildren and has imposed numerous tax burdens on certain generation-skipping transactions. There are several strategies, however, that can help you (and them) avoid onerous penalties.
Empower Them to Adopt a Healthy Philosophy About Wealth
Paul Getty once said, “My wealth is not a subject I relish discussing.” He’s likely not the only one! Talking about money is a conversation that requires a delicate balance and some strategy. Affluent parents, leery of creating entitled children, may hesitate to talk about the details and nuances of their wealth. But keeping too many secrets can cause issues later on, especially when the children stand to inherit substantial assets and have to manage their newly-acquired wealth.
With an estimated $68 trillion in nonfinancial and financial assets
To improve America’s poor Infrastructure score, the current administration’s proposed infrastructure bill has garnered support. It recommends committing and investing over $2 trillion to improve the country’s infrastructure—like roadways, bridges, and public transportation—through the next eight years. Some experts suggest investors would also benefit from investing in the infrastructure. First, the plan will expand well beyond the initial infrastructure components to include other elements like potable water, education, broadband, and communication networks. Second, infrastructure asset owners/operators have offered reasonable yields some investors may like, considering 10-year U.S. Treasury bonds currently generate a paltry 2%. Learn more by reading the article.