Getting your Fair Share
by Charles Arthur
|
|
Many times parents feel their money is private, and although they tell you it passes to you on their death, they tell you nothing about it. In the dark you remain, wondering what it is and what is going on? If you have siblings, you may worry if you will get your fair share, especially if one of them becomes the Executor of the Will, or if he or she is named the Successor Trustee in a Living Trust. Since you are not in charge of the distribution, you may already know it may not go well.
The converse problem is when you become the Executor or Successor Trustee and you have the responsibility to divide the wealth, and your siblings do not get along. You already know there are going to be problems, and no matter what you do, you will create animosity.
If this scenario does not apply to you, you probably know someone who has been through this nightmare.
Usually, current protocols for inheritance structuring remain awkward. Children often do not join in the parent’s financial arena, and are expected to be on their own, making their own way. In fact, some parents resent continuing to support their children, and rightfully so, especially when children refuse or fail be take responsibility.
None of this means anything if parents have little to give to their children while they are alive or when they pass, but it makes a huge difference when the stakes are high. Further, many parents on reaching old age forget their original designs, and the longer they linger the more complicated financial matters become. Few remain clearheaded until they leave this realm.
Lack of communication is the cause of most inheritance problems. This often stems from child and parent interaction in formative years. With misunderstandings and unresolved differences, so much unsaid becomes a complex emotional ball. These blocks to relationship need handling before issues about finances can be discussed.
Because heirs do not share in the set up or administration of a Living Trust or a Will, this leaves little room for educating them, unless the parent takes the time to do so. More often than not, parents do not want to share financial information for fear the children will want more than parents are willing to give. Some parents even threaten to disinherit their children if they do not obey.
Oddly, it seems though, the more money involved, the less parents want to share. It could be that this large pile amasses because of the parent’s need to have and keep, and their innate inclination to share never existed.
These issues do not necessarily apply to the ultrarich, who have long used asset accumulation methods over generations to perpetuate wealth. Removing asset management from family members by placing the responsibility in the hands of professionals, those born to wealth keep it by using Irrevocable Trusts where assets can perpetuate through generations.
These Trusts are known as Dynasty Trusts or Common-Law Trusts. In Common-Law Trusts family members hold Certificates representing their share of the family fortune. Taking the time to educate heirs about financial management and how to handle privacy, children take part in wealth-building enterprises, adding to the family fortune.
How would it be if you had mentors to teach you how to hold your financial world together? How would it be if you could use your pile of cash to help others. How would it be if you could concentrate on creating job opportunities, instead of looking for a job?
How this is done, why and the way to do it is now available.
Read: The Art of Passing the Buck, Volumes I and II, available by clicking on the books in the left column.
Charles Arthur is the pen name for the group which authored The Art of Passing the Buck, Volumes I and II.
