Many clients look at their assets and think, “I really don’t have that much. My estate plan can be very simple.” However, you have worked a lifetime and likely hope to leave a legacy of both family values and assets to help guide the next generation.
I’ve found that most people, both clients and advisers, do not understand this simple concept: “The cash people receive from you is more cash than you have.” What does this mean? Take me, for example. I have a home that has significant equity.
I don’t plan to sell this home in my lifetime because I love living in my home. However, in more than 80% of the trust estates we manage (and we have managed over 2,000 trust estates in the past 28 years), the house will most likely be sold to provide for distribution to the children. Subscribe to Kiplinger’s Personal Finance Be a smarter, better informed investor.
Sign up for Kiplinger’s Free E-Newsletters Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of expert advice - straight to your e-mail. I hold investment and retirement accounts.
I do not liquidate these assets because I want to continue to grow and diversify these investments for my future enjoyment, and possible later needs or retirement. These accounts will pass to my children without any such restriction on possible use. When I die, my home, investments and retirement assets are available i.
