You’ve been working successfully your whole life and have accumulated wealth that allows you to take care of your family for generations?
Excellent, but there are plenty of things to consider if you don’t want everything to disappear in just a few decades or even years. That’s what wealth planning is all about – it’s a legal service that allows you to structure your belongings in such a way that they can resist and weather any danger that can threaten them.
Thanks to that, you can be sure your family will be taken care of in the years to come. But let’s take a closer look at the subject, shall we?
What are the dangers to your wealth?
So, why exactly do you need wealth planning? Like we said, there are plenty of factors that can affect it and thus hurt your family and their resources.
First and foremost, you have to worry about taxes. Income tax, estate tax, wealth tax and even inheritance tax can all take a big chunk out of your total wealth. And if you, for example, have multiple children, dividing your assets among them automatically means they cannot get everything.
You may have been mis-sold things you don’t actually need, such as a packaged bank account or something else a competent lawyer can help you get rid of and maybe even get compensated for.
It is also a possibility that your assets become frozen after death, and divorces can also play a significant role. Finally, the members of your family can live in different countries, countries that may have different laws regarding inheritance.
Research shows that the wealth accumulated by one generation can disappear completely just two generations later if it is not properly managed. So, what can you do? You’ve guessed it – the answer is wealth planning.
How can wealth planning protect you and your family?
What are the ways in which wealth planning helps you, exactly? Well, there are several options your solicitors can use for that. They can set up:
- investor funds
- wills and prenuptial agreements
- international companies
All of these options can help you make the most of the laws in the jurisdiction that you’re focusing on, and in many cases, your lawyers will not use just one but several of these options to get you maximum profit.
Therefore, it is very important that you find a firm with plenty of experience and excellent knowledge of tax laws (among others, obviously) because combining such legal entities can become quite a complex endeavour. Optimal Solicitors in Manchester are a great example of that.
Of course, a lot will depend on what you actually want to do. An investment fund will help make sure smart investments are made in the future, a foundation can help you support a good cause more efficiently, a trust keeps assets safe, etc.
As you can see, there are many reasons why you should consider wealth planning if you have accumulated a lot of it over the years.
This is especially so because lately many governments around the world have begun focusing on wealthier families and are constantly proposing new regulations that could put you and your family under a microscope.
So, find a firm that is keeping track of all the latest changes to ensure the best possible protection at all times.