Prioritising to best pass it on

Rhian Morgan | NEWSLINE MEDIA LIMITED

Q My family and I have been considering the best ways to protect our wealth and plan for the future, particularly with all the rumours around the Budget. What should we be prioritising?

A There is much speculation surrounding the upcoming Budget, but it is just that – educated predictions. And, while there is little doubt changes will be made, it is important that families looking to build and protect their wealth for future generations ensure they have the right strategies.

Protecting inter-generational wealth goes beyond safeguarding assets and can mean different things for different families. Whether the focus is minimising tax implications upon death, securing assets in divorce, or what wealth should be used to achieve, every family should consider both personal and collective goals, thinking not just of today but the long term, while ensuring certain steps are taken to protect and grow their wealth.It is important those inheriting, benefiting from, or managing wealth in the future become familiar with the responsibility, and what they would like their family’s wealth legacy to be.

This could include education around finance, discussing goals for what funds should be used for, or even philanthropic interests that are important to individuals or the family as a whole.

No matter what changes the Budget introduces, tax incentives will continue to play a key role in wealth planning. Using gifting and pension allowances, and Capital Gains Tax exemptions can reduce your estate’s tax burden.

Whether protecting personal finances or a family business, it is essential to have the right legal documentation before any gifting and succession planning takes place, to ensure plans are safeguarded.

Although tax mitigation is often a focus, it should not obscure the goal of future growth as there are other threats to consider, such as inflation. Having a strategic and bespoke investment strategy that meets the goals of your family is essential for the success of your wealth plan.

Whether gifting, business succession, or considering key people’s position within the family, if there is a financial impact on the loss of individuals it is important to establish this and discuss insurance options with your financial adviser.

No two families are the same, so it’s crucial to have an expert who understands your family’s specific needs.

From estate planning and succession to tax strategies, the right adviser can help navigate uncertainties and ensure your family’s wealth plan evolves over time, successfully meeting today’s challenges and preparing for tomorrow’s.

Information provided is the opinion of Rhian Morgan and should not be considered advice.

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