Most people—regardless of professional background—would rather put off deciding who will inherit their material goodies, but wealth management experts tell Business Report that’s not a good idea.
“If we all knew when we would die, we would plan a lot better for it” says Brandon Lagarde, director of Postlethwaite & Netterville’s tax services division.
In reality, most people procrastinate on creating a wealth transfer plan, often waiting until it’s too late. Forget comprehensive wealth transfer plans, fewer than half of all Americans even have a will in place, according to several recent national surveys. Not surprisingly, the younger a person the longer the odds are of having a plan in place.
Foregoing a wealth transfer plan is not only one of the biggest mistakes accountant Gus Levy sees people make, it’s also one of the most frequent. And for those who put off making a plan, he warns there could be serious financial consequences down the road.
“Without a plan, the estate may be probated in a way you don’t want it to,” said Levy, owner of the accounting firm The Levy Company.
Though planning for the transfer of wealth may seem overwhelming, Lagarde says it’s best to start with a simple plan that can be altered over time as your needs and desires evolve.
“Just try to keep it simple. Don’t spend two dollars to save a dollar,” he says, adding those who are uncertain about specifics of a plan should ask their financial adviser about the reasons for using one strategy over another. “But do something, and do something that you understand completely.”
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