Preserve your wealth across generations with wealth transfer planning

Over $3.2 trillion is expected be passed down to inheritors in the United States within a generation. Yet, despite benefactors wanting to preserve that wealth for their descendants, it's commonly observed by those in the industry that family wealth rarely lasts across multiple generations.

At RBC Wealth Management, we surveyed over 1,200 Americans with an average net worth of US$4.3 million to see how prepared families are to give and receive wealth—and we discovered that most people are woefully unprepared for either scenario.

Wealth transfer plans

Many people have a will in place—but a will is just the beginning. Our research reveals that only 30% of benefactors have a comprehensive wealth transfer plan in place. With relatively few people ready for wealth transfer, there’s no time like the present to think about how to pass on your legacy.  At Stovel Asset Management, it is our priority to work with you to build your legacy plan. We engage multiple generations to ensure your plan is fulfilled according to your wishes.

Family Bank – A Strategy for Preserving Wealth

In our experience, those with significant wealth are focused not only on investment management of their financial assets, but they also care about the long-term welfare of their families. Their goal of capital preservation is often linked to financial and family objectives and we understand the importance of having a strategy for managing both.

Despite effort that’s put into earning wealth and investing it wisely, many families with financial wealth often see it disappear within three generations of its accumulation. For many affluent families, investing in the next generation’s growth and development comes naturally, however it becomes more challenging to answer the question of how much to support the next generation beyond their youth and how to do so without creating a sense of entitlement.  We work with many of our clients to implement a Family Bank to address these challenging scenarios.

A family bank is an arrangement where (grand)parents form a trust that designates a portion of the family’s wealth for loans to family members. The purpose of the family bank is to foster responsible money behaviors and encourage productive endeavors that the younger generations may otherwise not have had the opportunity to pursue.

Get in touch with us to learn more about some of the Wealth Transfer strategies mentioned above and we can discuss which would suit your families objectives.

 
 
Download the Wealth Transfer Report: Lasting Legacy for more insights into giving and inheriting wealth across generations.
 
Contact us to discuss how we can put a comprehensive wealth transfer plan in place and work together to make sure your heirs are well-prepared to carry on your legacy.
 

 

Insights into giving and inheriting wealth across generations

Within a generation, over $400 billion is expected to be passed down to inheritors in Canada. How are Canadian families preparing for one of the largest transfers of wealth in history? And will inheritors be ready?

“It’s up to the givers of wealth to proactively prepare the next generation to manage that wealth.”