Protecting your intergenerational estate plans I
ntergenerational planning is not only about passing assets on to the next generation, but about creating a robust framework that safeguards the wellbeing and success of future generations. Building layers of protection into your intergenerational planning helps to mitigate risks, address uncertainties, and seeks to ensure that your legacy endures.
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Ensure that documents such as Wills, trusts and LPAs are up to date and drafted correctly. These documents provide a solid foundation for the succession of your estate, as well as financial and healthcare decisions that may need to be made during your lifetime.
Consider setting up trusts as part of your estate planning. Trusts can provide added protection by allowing you to control the timing and conditions of asset distribution. This can be particularly useful if you have concerns about beneficiaries’ financial maturity or external influences.
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Ensure that partnership agreements, company articles and shareholder agreements are regularly reviewed and considered in the light of changes to personal circumstances and changes to the operations carried out by your business, if you have one.
Anticipate unexpected events by including contingency plans and seek to protect against life events such as divorce or separation. Pre-nuptial and post-nuptial agreements, as well as living together agreements, can be crucial in providing you with protection against the dissemination of assets following such an event. You should consider scenarios such as a sudden loss of income, economic downturns or unexpected healthcare costs. Once an asset has been given away, control passes to the recipient.
Empower future generations with financial literacy and education. Teach them how to manage assets, make informed investment decisions and navigate potential pitfalls.
