The Ins and Outs of the Great Wealth Transfer: Why Professional Guidance is Key
The great wealth transfer is well underway, and families need to start preparing now. According to certified financial planner Stacy Francis, president and CEO of Francis Financial in New York City, an estimated $84 trillion of wealth will change hands by 2045, with Gen X and millennial heirs set to inherit the majority. Despite this impending shift, many families are not having crucial conversations about money.
At Extreme Investor Network, we believe that professional guidance is essential when navigating the complexities of estate planning and wealth transfer. While some individuals may balk at the idea of paying for attorney services to draft key documents like wills, trusts, or health-care proxies, the impact of a well-crafted estate plan cannot be overstated. Online tools can be helpful, but they should not replace the expertise of a knowledgeable advisor who can tailor a plan to your specific needs and goals.
In addition to having a solid estate plan in place, it’s important to regularly review and update beneficiary designations on all financial accounts. These designations determine where your assets will go upon your death, so ensuring they are accurate and up-to-date is crucial for a smooth wealth transfer process.
One significant development to keep in mind is the Tax Cuts and Jobs Act (TCJA) enacted by former President Donald Trump, which significantly increased the lifetime estate and gift tax exemption. As of now, the exemption stands at $13.99 million for individuals and $27.98 million for married couples filing jointly, but these thresholds could see a significant decrease after 2025 unless Congress extends the TCJA provision. The future of the exemption is uncertain, given the ever-changing political landscape.
At Extreme Investor Network, we understand the importance of staying informed and prepared for the financial changes ahead. Our team of expert advisors is here to offer guidance and support as you navigate the complexities of estate planning and wealth transfer. Stay tuned for more insightful content on managing, growing, and protecting your wealth for the years to come.