Would you like to pass down your wealth but not sure how?

by PenLife Associates
Published: Last Updated on

by Pen Life Associates

Traditionally, wealth has passed from one generation to the next upon death. Intergenerational wealth, however, looks at how families can use their wealth more collaboratively to support each other during their lifetimes.

The importance of intergenerational wealth planning cannot be overstated. At PenLife, we understand the significance of preserving and growing wealth, not just for your lifetime but for future generations. We have created a guide which delves into the concept of intergenerational wealth, providing insight on how you can effectively plan and transfer your financial legacy to the next generation.

While you may know who you want to pass on wealth to, deciding how you’ll do so is just as important. There’s more than one way to pass on wealth to your family and you’ll need to consider potential tax charges. Each option has advantages and drawbacks that you need to weigh up to understand what’s right for you and your beneficiaries.

Gifting assets during your lifetime

Passing on wealth during your lifetime could mean you’re able to help your family overcome obstacles they are facing now. Receiving a financial boost earlier in life might set them up for greater financial security over the long term. It also means you’ll be able to see the benefits of the wealth you’ve passed on and could ensure they use the assets in a way that aligns with your wishes.

Using a trust to pass on wealth

Placing assets in a trust often means removing them from your estate during your lifetime, although you could also choose for assets to be transferred to a trust after you pass away. One of the benefits of using a trust is that it could provide you with more control when compared to gifting.

Leaving assets in your will

Writing a will to state who you want to benefit from your wealth when you pass away is the traditional way to transfer assets.
If you’re worried about providing gifts because they could affect your lifestyle and financial security in the future, leaving an inheritance could provide a solution. Yet, it could still be beneficial to consider how the value of your estate may change during your lifetime – it may affect how you want to pass on assets to loved ones and other beneficiaries.

Whether you’d like to gift assets now or want to understand if a trust is right for you, please contact us. We can work with you to create an intergenerational wealth plan that’s aligned with your goals. Contact us on 01904 661140 or email enquiries@pen-life.co.uk. To request our free ‘Intergenerational Wealth Planning’ guide, please follow the instructions on the image below:

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