Leaving a Family Legacy

That simple question can spark a lot of anxiety. Nearly 57% of Baby Boomers fear they won’t have enough in their retirement accounts to pass on to their families. But Helmstar clients are bucking those trends by employing strategies that can allow them to pass on wealth to the next generation.

1. Establish a trust. Establishing a trust or a family foundation allows you to transfer your assets on a tax-deductible basis to family, friends and charities. This can provide a steady supplemental income for years and even generations to come, while avoiding capital gains taxes.

2. Leave real estate. Leaving a family home or vacation home to your loved ones can leave a variety of options. They can live in it and create new memories of their own, or they can renovate the property to sell or rent.

3. Leave a business. If you own your own business, you’ve likely put in years of hard work, perseverance and passion to create something successful. You’ll want to pass that success on to your family. You can leave all or part of your business ownership to your family members. From there, your family can decide to keep or sell their share. Make sure to coordinate and let any co-owners know about your plans.

4. List a loved one as a beneficiary. If you’re going to have money left over from your retirement accounts, make sure it goes back to the right hands. Beneficiaries listed on IRAs have five years to take the money from the account, or they can transfer the money into an inherited IRA for a lifetime stream of steady income. For those with a 401(k), check with your employer’s human resources department about how you can rollover the account to your spouse or transfer it to an inherited retirement account.

You can also purchase an annuity and list children or loved ones as beneficiaries. They can receive a steady stream of payments after you pass away.

5. Pass on healthy financial habits. A family legacy isn’t just the assets you’ve left behind — it’s also the values you pass on to the next generation. Share your knowledge with your children and grandchildren. Show them how to save. Give advice on where to invest. Teach them how to make a plan, reach goals and bounce back after setbacks.

From real estate to businesses and personal possessions, assets can be powerful tools to give families peace of mind and financial security for years (and even generations) to come.

Thinking about how you are going to build and leave a legacy of your own? Talk to us.

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