Fatshimetrie, the leading magazine for finance and wealth management enthusiasts, highlights Maryanne Leicher, Financial Planning Specialist at Chartered Wealth Solutions. Her expertise and experience make her a key figure in the field of estate planning. As the year draws to a close and the holidays loom, it is crucial to take a moment to assess the state of your estate plan.
Often, the standard response to estate planning questions is, “I have a will, I’m all set, thank you.” However, Maryanne Leicher, CPA and CFP, emphasizes the importance of going beyond simply having a will in place. There are several key areas to consider when reviewing your estate plan.
The first question to ask is the liquidity of your estate. Have you considered the amount of inheritance tax and capital gains tax that will apply to your estate, and what can you do now to reduce these wealth taxes? If something unexpected happens, how long will it take your family to settle a deceased person’s estate, and will your heirs need financial support during this time?
It is essential to consider assets that your will has no authority over, such as pensions, annuities, life insurance policies and overseas life insurance contracts, known as “intestate assets”. Thorough estate planning involves checking the designated beneficiaries of these assets to ensure they are in line with your wishes.
In addition, it is essential to determine who has the skills and contacts to settle your estate. Have you considered the other miscellaneous costs involved in settling an estate, such as notary fees, tax consultant fees and Master of the Order fees? If you are a partner in a private company or family trust, how do the securities held in these legal entities and the loans you have taken out impact your estate plan?
As the head of a successful family business, have you considered adequate estate planning for the children involved in the business? Transferring intergenerational wealth through a trust or a domestic or foreign investment holding company is a potential solution to ensure the continuity of family wealth in the most tax-efficient way for future generations.
Also, if you are a high net worth individual with real estate abroad, have you considered the residence of that property? This will have a direct impact on its transfer. For example, France has statutory inheritance rules that protect direct descendants and surviving spouses, regardless of what your will says. In addition, for UK domiciled bank accounts, it is necessary to obtain a Certificate of Succession. Advance planning with a financial planner specialising in international estate planning can help to avoid potential delays in settling your global estate and reduce the high costs associated with UK lawyers.
In conclusion, estate planning is essential for international investors and is a discipline in itself. Properly structuring these direct offshore holdings can make a significant difference and help to avoid the risk of a hefty foreign inheritance tax. It is therefore essential to take the time to plan your estate, starting with simpler tasks and gradually progressing to more complex elements. It is by making the right decisions now that you will ensure the prosperity of your loved ones in the future.
Maryanne Leicher, with her deep expertise and wise approach, embodies the need for rigorous and thoughtful estate planning to ensure the longevity of your assets and the peace of mind of your heirs.