Sunday, January 13, 2008

How to Transfer Wealth the Right Way


Nothing tears a family apart more than arguments over money. To make sure financial issues never come between you and your relatives, take some steps to ensure a smooth transition of any assets.


Difficulty: Moderate



Step One

As with anything, the key to a smooth asset transfer lies in proper planning—-from deciding your goals to discussing your plans with heirs and working with your lawyer and/or accountant to execute your intentions.

Step Two

You need to decide how much, when and in what form (e.g., cash, stocks, real property) an inheritance will be transferred. A team consisting of an attorney and a tax professional can help.

Step Three

Deciding how to divide assets can have a major impact on family dynamics. Some family members may feel short-changed while others may feel burdened. The best way to address this is to let your family know your intentions ahead of time and, ideally, reach some kind of consensus early on to avoid conflicts down the road.

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