Essential Restaurant Accounting Practices for Thriving Restaurants
Given the thin profit margins and high failure rate of the restaurant industry, an owner needs to harness every available resource to build and...
You’ve probably heard the phrase, “You can’t take it with you.” And to some extent, that is true. Cash and real estate won’t be much use to you after you’ve passed. However, if you have children or loved ones, leaving something behind is likely important to you . Building and preserving wealth for the next generation is a way of protecting the people you love. Sometimes it’s a way of opening doors for them that were closed to you. Nurturing generational wealth creates financial security for your children, grandchildren and everyone who follows in your footsteps. Estate planning is the process that smoothes the passage of that wealth from one generation to the next. Failing to do your estate planning puts everything you’ve built at risk.
There’s a lot more to building generational wealth than amassing a big sum of money. To protect what you’ve already earned and preserve it for the next generation, you’re going to want to watch out for some very expensive obstacles.
I can’t overstate the importance of estate planning in building and preserving generational wealth. Estate planning lets you exert some control over what happens to your assets when you’re gone. This process creates a framework to guide your heirs and the courts in their decision making around your assets.
Through estate planning, you can establish trusts with strict requirements and benchmarks that beneficiaries must meet before accessing assets. Establishing trusts may help you pass assets to heirs outside of the probate system, and keep those assets from counting toward your taxable estate. Estate planning is also a critical part of preserving generational wealth beyond the first generation. This process is an opportunity for you to think about the guidelines you want future generations to follow, and to create a formal record of your wishes.
Keep in mind that estate planning is about more than planning for what happens when you die. If you want to start passing on assets now, for example, you can work with your estate planning advisors to make tax-advantaged gifts or to establish a trust that a beneficiary can draw from right away.
At Sachetta Callahan, we know that you’re not just working hard to acquire more money—you’re working to provide comfort and security to the people you love most, even once you’re gone. We want to help you with that. Reach out if you have questions about estate planning. Contact me today!
Matthew Stead joined Sachetta Callahan in 2014 as an intern. He now serves as a financial advisor, the go-to office IT person and the host of Sachetta Callahan’s podcast Fine Answers.
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