Wealth Transfer Explained

Wealth Transfer

by Dr Edgar Paltzer

BUSINESS

WEALTH TRANSFER EXPLAINED

The term ‘wealth transfer’ refers to the transfer of ownership of assets following a death. A successful wealth transfer is carefully planned and involves a number of aspects, including a last will and testament and estate planning, as well as factors such as trusts and life insurance.

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Decreasing the Tax Burden One of the key benefits of careful estate planning for wealth transfer is reducing the tax burden on the beneficiaries. Benefactors want to know that the largest possible proportion of their assets will reach their chosen recipients, rather than ending up in government coffers.

Taxes to Consider There are multiple taxes that the beneficiaries of a will might be required to cover over and above death and inheritance taxes. Many financial vehicles accrue taxes that need to be paid each year and these taxes are passed on to the inheritors. Even something as simple as the money in a savings account attracts a tax bill. This is why the services of a professional wealth transfer expert are essential to ensure the right vehicles for passing on wealth are selected to minimise tax.

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You can learn more about preparing for a successful wealth transfer by visiting the blog of Dr Edgar Paltzer.