{"id":3920,"date":"2020-07-01T16:09:00","date_gmt":"2020-07-01T16:09:00","guid":{"rendered":"https:\/\/fusionwm.com\/?p=3920"},"modified":"2022-10-12T16:13:17","modified_gmt":"2022-10-12T16:13:17","slug":"preparing-heirs-for-their-inheritance","status":"publish","type":"post","link":"https:\/\/fusionwm.com\/preparing-heirs-for-their-inheritance\/","title":{"rendered":"Preparing Heirs for Their Inheritance"},"content":{"rendered":"\n
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Inheriting money comes with plenty of benefits. From being less worried (or no longer worried at all) about paying for life\u2019s necessities to enjoying the advantages of affluence\u2014more spending on luxury goods, affording a top-tier education for the kids and so on\u2014inheritors often find that some of life\u2019s key stumbling blocks are no longer in their paths.<\/p>\n\n\n\n

That said, an inheritance\u2014even a huge one\u2014doesn\u2019t automatically mean a worry-free life of ease. The reality is that inheriting wealth can create unique challenges and conflicts, both internal and external. A windfall can be the root of significant problems for your heirs\u2014and, therefore, for you too.<\/p>\n\n\n\n

With that in mind, here\u2019s a look at some of the inheritance-related issues that often crop up among the Super Rich\u2014those people with a net worth of $500 million or more\u2014and how they tend to address them.<\/p>\n\n\n\n

Their strategies can potentially inform your own action plan regardless of whether you\u2019re the one giving the money or receiving it.<\/p>\n\n\n\n

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Mixed feelings about wealth<\/h1>\n\n\n\n

Inheriting a sizable fortune can be confusing to some inheritors. Very often, significant wealth goes hand in hand with status and power, which sometimes leads to heirs abusing their positions. For example, they can become narcissists and bullies, using their inherited wealth as justification for cruel or boorish behavior.<\/p>\n\n\n\n

Some inheritors feel trapped and isolated. The find the money has set them apart, and they have difficulties building trust and dealing with other people.<\/p>\n\n\n\n

Often, inheritors who think they don\u2019t deserve the money end up feeling guilty. They ask themselves \u201cWhy me?\u201d and feel the family money is an anchor holding them down.<\/p>\n\n\n\n

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Transferring wealth<\/h1>\n\n\n\n

In our experience, we find that most Super Rich wealth creators want to pass the results of their hard work and commitment to their children and other loved ones. Doing so involves a number of considerations:<\/p>\n\n\n\n

  1. Financial matters.<\/strong> The aim here is to be tax-efficient in transferring the wealth. For instance, there are different tax strategies that can be employed to mitigate intergenerational loss of family wealth\u2014a key concern of many of the Super Rich. This aspect of transferring the family wealth is the most straightforward for most wealthy families.<\/li><\/ol>\n\n\n\n
    1. Ensuring heirs will be smart about the money<\/strong>. A major concern of Super Rich wealth creators is that inheritors will misuse the wealth they are given. They believe, rightly so in our opinion, that being given control over a large amount of money and being able to make wise decisions do not always align.<\/li><\/ol>\n\n\n\n

      But it\u2019s not just the Super Rich wealth creators who are concerned about the ability of heirs to manage their inheritances\u2014it\u2019s often also the heirs. It can be easy for inheritors to mismanage their fortunes, and we find that many inheritors recognize that. That means heirs need to be well prepared for the day when they receive their inheritances.<\/p>\n\n\n\n

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      Money\u2019s impact today<\/h1>\n\n\n\n

      So where do you begin if you want to foster financial intelligence among heirs who may one day inherit wealth?<\/p>\n\n\n\n

      A good starting point for understanding how inheriting wealth might affect heirs\u2019 lives is seeing how the money is impacting them today<\/em>. When they get into their teens, the majority of inheritors have some idea that they are wealthy. Today, attempts by parents to hide or downplay their affluence are not realistic.<\/p>\n\n\n\n

      Heirs should consider their answers to questions such as:<\/p>\n\n\n\n