Estate Planning for Ultra-High Net Worth Individuals – PillarWM
Individuals with a high net worth or an ultra-high net worth spend an ample amount of time managing their assets. This is to ensure it is distributed or allocated to the right places. However, wealth management becomes far trickier once you are no longer present. Individuals with $5 million to $500 million in liquid investment assets should seek estate planning assistance from Pillar Wealth Management to ensure their assets goes to the right people following their passing. You can learn about some useful wealth management strategies in our special guide for investors with $10 million or more.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
Table of Contents
What is Estate Planning?
You may have heard the term “estates planning” used by financial advisors before, and wondered “what is the purpose of estates planning?”.
Some believe this refers to the act of planning real estate purchases. However, estate plannings are the collection of services related to preparing the distribution of assets following an individual’s passing. Please set up a meeting with our wealth managers to learn more about estate planning.
Estates planning includes:
– Distributing assets to heirs and beneficiaries
– Distributing assets to charities
– Settlement of estate taxes
These activities are typically performed with the assistance of a financial advisor and an estate attorney. However, a qualified wealth manager can also provide estate plannings services for individuals with a high net worth or an ultra-high net worth. You can learn about estate planning and asset allocation in our book The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.
Understanding Estate Planning
Let’s look at the various services included in estate plannings.
Creating a will is essential for individuals of any net worth. However, it is vital for those with a high net worth or an ultra-high net worth.
Your children and beneficiaries may depend on your assets to maintain their lifestyle and seek out growth opportunities. However, your assets may not be distributed to them properly if you do not have a will in place at the time of your passing.
Distributing Wealth to Charities
Many wealthy individuals engage in philanthropy during their lifetime. This could be participating in a social cause or donating to a charity that is dear to them. Many such individuals would also like a portion of their assets to be distributed to charities following their passing.
By having the right estate plan in place, you will be able to ensure your assets is given to the right charities.
Settlement of Estate Taxes
Estate taxes are levied on an estate that is worth more than $11.7 million. This tax is calculated by the federal government and certain state governments and is based on the estate’s fair market value.
Wealthy individuals often possess an estate whose value exceeds this threshold. If you are one such wealthy individual, you may already be aware that you cannot legally avoid these taxes. However, it is possible to reduce the amount owed in different ways. Please speak with our wealth managers to learn how we can help you minimize your estate taxes.
Why Consider Estate Planning?
The services mentioned above should make it clear why estate plannings is essential for high net worth as well as ultra-high net worth individuals. However, there are plenty of other reasons to consider this service. This includes:
Minimizing Attorney Expenses
When an individual passes on without a proper estate plan in place, the court system will need to take care of the various assets distribution tasks. This can be a very long and expensive process, during which the attorney may pocket a significant quantity of your wealth. Having a robust estate plan in place reduces the amount of work that needs to be done following your passing, which also helps save on attorney fees.
Property distribution can be a time-consuming process. It involves attorneys, filling out paperwork, and meeting with various financial professionals. It typically takes several months for the children or beneficiaries of wealthy individuals to see any of the assets owed to them. This can be problematic if they need access to finances to pay for medical bills or education.
An estate plan minimizes delays in the assets distribution process and ensures your children and beneficiaries receive your assets in the shortest amount of time.
Keeping All Parties Satisfied
In addition to saving time, a well-made estate plan can also minimize friction between beneficiaries. Once you have clearly defined how much each beneficiary is set to receive following your passing, they will be less likely to engage in disputes over assets with other beneficiaries. This route helps keep all parties satisfied.
Preparing for Incapacity
Estate plan is typically associated with planning for your eventual passing. However, an estate plan is also useful for unforeseen events that cause incapacitation. Anyone can get into a life-altering accident or develop a medical condition at any time. If these occurrences leave you incapacitated, it will be tricky for your children and dependents to manage caring for you themselves.
An estate plan helps you prepare for such scenarios by setting up a management system that goes into effect following a life-changing event.
How Much Does Estate Planning Cost?
Wealthy individuals that are interested in carrying out estate planning may be wondering, “what are the average fees of an estate plan?”. The truth is that there is no fixed charge for these services.
You may need to contact an attorney directly and ask what their rates are. However, estate planning attorneys may charge $200 to $300 per hour. This means creating your estate plan may cost thousands of dollars depending on its complexity and the number of items it will cover.
Wealthy individuals can save on estate planning costs by using the services of our assets managers at Pillar Wealth Management. You can learn various ways to choose the right financial advisor using our special guide.
When Should Estate Planning Be Performed?
So when should you do estate planning? Estate planning is a task that should be performed as soon as possible. After all, no one can predict when a potentially life-threatening or debilitating event is going to occur.
In most cases, estate plans can be created in as little as 5 to 6 weeks. Wealthy individuals should plan for this beforehand so that they are covered in the event of something unexpected.
Why You Should Choose a Wealth Manager for Estate Planning
As mentioned earlier, estate planning can be performed by a qualified wealth manager. So why should you choose a wealth manager over an ordinary financial advisor for your estate planning? Some great reasons include:
Access to Other Services
A wealth manager typically provides a much wider range of services compared to financial advisors. At Pillar Wealth Management, we offer services related to:
– Estate Planning
– Asset Allocation Analysis
– Risk Management
– Tax Planning
– Life Insurance Policies and Insurance Planning
Each of these services can be incredibly useful for individuals with $5 million to $500 million in liquid investment assets. Retirement planning and tax planning are just as important to wealth management as estate planning. Using these services can help you manage your wealth in a more comprehensive manner. Learn about making better investment choices by reading our special guide for investors with $10 million or more.
Better Understanding of Your Finances
A wealth manager can analyze your finances and study your portfolio. They can then offer advice related to asset allocation or investment. You can read about improving your portfolio performance in our special guide.
Understanding your finances is key to managing them. You may have some idea of where your wealth is tied up, but having an expert comb through your finances will give you a clearer picture of where you stand and how you can go about achieving your financial or investment objectives for the future.
A Professional Who Understands Your Needs
One of the key differences between a wealth manager and a financial advisor is that wealth managers typically deal with only high net worth or ultra-high net worth clients. This makes them uniquely suited for managing the needs and concerns of wealthy individuals.
A wealth manager understands many of the wealth-building strategies that high net worth and ultra-high net worth individuals typically follow and can guide them in meeting their financial objectives. You can learn about growing your portfolio in our special guide.
Wealth managers also differ from financial advisors in that they charge a fixed fee rather than an hourly rate. This fee is typically based on a percentage of your asset value.
This fee structure also enables you to use a wealth manager’s services as frequently as needed and without incurring additional charges for each consultation for beneficiary designations. You can learn more about our fee structure by setting up a meeting with us.
Why Choose Pillar Wealth Management?
There are numerous wealth management firms across the country to choose from. However, few firms offer the quality of services we provide. Some reasons to select Wealth Pillar Management for estate planning include:
Experience is vital when you are managing wealth for high net worth or even ultra-high net worth individuals. You can read many books about wealth management; however, many of the critical aspects of this service are learned on the job.
At Pillar Wealth Management, our experts have six decades of experience with wealth management. This knowledge and expertise are invaluable when guiding clients towards meeting their future goals. We have helped numerous clients overcome financial challenges over the years and strive to apply the knowledge we have gained and provide useful advice for each situation.
At Pillar Wealth Management, we understand that each client has unique needs. Some wish to grow their wealth, while others may be interested in safeguarding their future with estate planning and retirement planning.
For this reason, we offer personalized services for each client. Our plans are tailored to fit your understanding of finance and investment. This ensures you can follow along with each strategy at a comfortable pace.
We can help you execute complex investment strategies, even if you are new to investment practices. Similarly, we can help you create and chart out the most suitable path for meeting your financial goals.
It is crucial to be able to trust the financial advisor or wealth manager you are using. These professionals will be managing your finances and making decisions to help you meet your financial goals.
We have spent many years building up the trust of our clients and strive to maintain this trust. Our wealth managers are easy to reach out to and can offer their expertise on any financial matter, no matter how small. Please get in touch and set up a free meeting with our wealth managers today.
Estate planning should be handled by a trustworthy professional, so place your trust in our wealth managers at Pillar Wealth Management.
Bottomline of Estate planning
For most the business owner and affluent people, especially if you are individuals with $5 million to $500 million in liquid investment assets, managing the assets can be so crucial if it handled by themself. Especially if they have to mind the other aspects such as the estate planning, and several financial matters else. That is why you need to work with credible assets management. Assets management or wealth management experts are able to handle all of your needs in financial areas.
They can be your money manager, estate planner, tax advisor, estate tax, and many more. Moreover, the assets management is not only working on your investment, but also various aspects such as managing your estate planning documents, credit cards, power of attorney, probate process, living will, deal with the life insurance policy, and also manage your advance health care directive. Life changes and you have to mind your loved ones, family members, and all of your wishes before death coming.
© 2018 – 2021 Pillar Wealth Management LLC – All rights reserved
Financial Power of Attorney
The term of financial power of attorney can be described as the power of attorney which bring someone the legitimation to perform any of the transactions based on your behalf. In some cases, power of attorney is quite effective and efficient because it can handle several financial matters that such as the real estate transaction. An attorney can be only used once, and power of attorney can be used for all transactions when you are become incapacitated.
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