Raymond James Survey

Investors’ Top Priorities for Safeguarding Generational Wealth - Seite 2

“For many, an ideal scenario would be to take a set dollar amount and divide it equally among heirs, but that’s rarely the case. With illiquid assets to consider such as property, collectibles, businesses, heirlooms and so on, the task of dividing assets equitably becomes more complex,” said Weaver. “This is where discord in the family can begin if a client’s intentions aren’t clearly communicated.” 

Investors with $500,000 or more in assets appear to be more comfortable discussing wealth than average, with 81% asserting that they have been at least “somewhat” transparent with heirs (45% say they have been “extremely” transparent). Consistent communication might start small with discussions about monthly budgets or annual donations and build on that foundation of financial values to help heirs feel empowered to address changing circumstances, continued Weaver.

Tax Efficient Estate Planning

Taxes are another top-of-mind issue among those passing on wealth. 9 in 10 respondents said tax efficiency is a somewhat-to-extremely important part of their wealth transfer planning. However a significant number of investors (37%) either do not, or do not know whether they have an estate plan that includes tax-efficient strategies.

Given the complexities of tax code and the regularity of rule changes, taxes may feel like a moving target to investors and require the help of a professional. But only 26% of those surveyed have consulted tax professionals as part of their planning. For wealthy grantors, more complex vehicles such as trusts, specialized insurance and structured giving may be necessary to maximize their legacy, according to Weaver.

Imparting Charitable Values

More than half (54%) of respondents said having a positive philanthropic impact is an important part of passing their legacy successfully from one generation to the next. They aren’t alone in the sentiment, with many of the world’s wealthiest pledging to give away most of their significant wealth. While the majority of investors take a more moderate approach, 1 in 10 respondents plan to leave 25% or more of their wealth to charity.

If they were receiving an inheritance, 60% of respondents said it would be important (24% “extremely,” 46% “somewhat”) to hear impactful stories that shaped their grantor’s values and personal character. This presents an opportunity for investors to share the beliefs and philanthropic vision behind an inheritance with their heirs.