Your inheritance marks a beginning and an end. We understand how to approach this delicate situation because we’ve worked with people and families like you for almost four decades.
From foundational financial planning with your new wealth, to strategies for optimizing your taxes, transferring assets, and estate planning, we’re here to help ensure your new wealth is protected, optimized, and meets your long-term goals. In addition to your financial advisor, your unified and integrated team will be customized based on your needs, and may consist of a Certified Public Account (CPA), CERTIFIED FINANCIAL PLANNER™ professional, investment specialist, insurance specialist, trustee professionals, and more all working together to help protect your legacy for years to come.
At Mercer Advisors, we assist our clients by taking care of the business side of coming into an inheritance while allowing them to focus on the personal and emotional aspects of losing someone close to them. When the time is right, we gather the necessary information to build the financial plan and provide recommendations for moving forward to help protect and grow their wealth.
$84 Trillion in Wealth is Expected to be Transferred Over the Next 20 Years
If you are anticipating wealth from an inheritance or have recently acquired one, consulting a wealth professional is vital for understanding how to optimize it.
Source: Cerulli U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2021 report
Generational Wealth Planning
Inheriting wealth marks a beginning, rather than an end – now is the most important time to speak with a wealth professional so that you can understand how to make the most of your inheritance. We have guided thousands of clients during this emotional time, so let our deep experience also help you. Read on for more information on important financial considerations for recent inheritors.
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Inherited wealth can create many new opportunities for you and your loved ones but can also have emotional and financial implications. A large inheritance can also create new challenges and may force you to deal with scenarios that were not previously part of your financial plan. For instance, what effect will this new wealth have on your taxes? How do you protect it and grow it? How does this affect your estate plan? Perhaps most importantly, what is the purpose of this new wealth, and how can that purpose be achieved?
The first step in generational wealth planning is to meet with a financial advisor to determine how an increase in wealth will affect your finances. These effects will almost certainly be multi-faceted, and it is important to have a team of professionals who can address and help connect the dots of your financial life. The following are some factors to consider when talking to your advisor.
Taxes and trusts
An increase in wealth could move you into higher tax brackets. While this may cause you to pay income tax at a higher marginal rate, it can also enhance the effectiveness of tax reduction strategies such as loss harvesting, charitable deductions, and tax-efficient investments. Some more advanced strategies that were cost prohibitive at lower asset levels might become viable with larger amounts in play. Estate strategies such as credit shelter trusts, spousal lifetime access trusts (SLATs), intentionally defective grantor trusts (IDGTs), and irrevocable life insurance trusts (ILITs) can be used to help reduce or eliminate estate taxes at death. Multigenerational dynasty trusts can be created to provide for beneficiaries for many years to come. These strategies come with their own tax and financial considerations, and the guidance of qualified legal and tax advisors is critical.
Charitable planning
Multi-generational planning might also involve charitable purposes. Many of our clients choose to create charitable trusts, private foundations, or donor advised funds to this end. These vehicles allow for a portion of your wealth to further your charitable goals and can be directed by family members after your death. They may also provide immediate income tax benefits in the form of charitable deductions.
An integrated team
In addition to your financial advisor, you will likely need a Certified Public Accountant (CPA) to help with your taxes, an estate planner to address legacy planning, wealth transfer, asset protection considerations, and a CERTIFIED FINANCIAL PLANNER™ (CFP®) professional to develop a comprehensive financial plan, and an investment management specialist to build an investment portfolio that is consistent with your goals. Additional team members such as insurance specialists, trustee services, and real estate managers may also be needed.1
Mercer Advisors provides access to these specialists as one unified team and can help answer questions relating to optimizing taxes, transferring assets, multi-generational planning, and more. We have guided many of our clients during this emotional time, so let our deep experience help you. Contact us today to find out how we can help you and your loved ones with generational wealth planning.
A Unified and Integrated Approach to Your Financial Planning is an Integral Part of Safeguarding Your Legacy
Your inheritance provides a unique opportunity to create generational wealth for your family. Taking a unified and integrated approach to your wealth can help ensure its longevity and protect your legacy for the years to come.
1 Mercer Global Advisors has a related insurance agency. Mercer Advisors Insurance Services, LLC (MAIS) is a wholly owned subsidiary of Mercer Advisors Inc. Employees of Mercer Global Advisors serve as officers of MAIS. MAIS provides individual life, disability, long term care coverage, and property and casualty coverage through various insurance companies. For Mercer Global Advisors clients who wish to purchase insurance products, MAIS has entered into a non-exclusive referral agreement with Strategic Partner(s), where the Strategic Partner will provide necessary services relative to the marketing, placement, and servicing of the insurance products, including without limitation preparing and presenting illustrations, supporting the underwriting process, assisting with the completion and execution of applications, delivering policies, and servicing in-force business. MAIS and the Strategic Partner will be listed as either “agents” or “co-agents” on the policies. While Mercer Global Advisors does not receive a referral fee, Strategic Partner receives a percentage of the commission revenue. MAIS and Strategic Partner do have a referral fee sharing agreement.
