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Estate Planning For Ultra High Net Worth Individuals

As an ultra high net worth individual, you will already understand that you no longer need to accumulate wealth. Instead, your focus will be on the preservation and protection of your assets.

Ultra high net worth estate planning focuses on protection rather than accumulation. It prioritizes:

  • Wealth preservation
  • Estate tax minimization
  • Inter-generational asset transfer aligned with your goals and objectives

It’s easy to think that having accumulated a high amount of wealth, you are invincible and that the future is secure. The unfortunate reality is that no one is immune from issues such as:

  • Lawsuits, particularly liability claims
  • Income loss due to severe illness and disability
  • Market volatility

This makes the preservation aspect of ultra high net worth estate planning crucial. If you or your family has worked hard to achieve wealth, it makes sense to work hard to protect the results with excellent estate planning.

Ultra High Net Worth Estate Planning

Ultra high net worth estate planning requires special attention. “Off-the-shelf” solutions are unsuitable for ultra high net worth individuals. They can’t cope with such a large amount of wealth.

Most ultra high net worth individuals will face at least some of the following challenges:

  • Higher taxes and additional tax rules
  • A larger more complex portfolio
  • Multiple properties across multiple countries
  • A large number of other physical assets, such as vehicles, jewelry, art, antiques, and other heirlooms.
  • Keeping abreast of philanthropic activities
  • Business succession

Taking this into consideration, your wealth manager will adopt a customized approach. They will look closely at your goals and objectives, and the restrictions and challenges you face in ultra high net worth estate planning. They will then use that information to create an estate plan that aligns with those needs and protects them along the way.

Assisting Your Philanthropic Efforts

Many ultra high net worth individuals choose to share their wealth through charitable associations and causes. Your wealth manager will help you plan the best ways to donate. He or she can also set up a charitable foundation, allowing your philanthropic efforts to continue as part of your legacy.

Dealing With Business Succession

If you plan to pass your business on to younger generations, you need a robust succession planning strategy to deal with the complexities of the process. Business succession is not an overnight process. A generational wealth management firm will recognize the importance of incorporating this into your estate plan as soon as possible. Doing so will ensure the transition goes smoothly so that your business can continue seamlessly and successfully.

Choosing a Wealth Management Firm That Works For You

A common misconception is that by spreading the management of your wealth across multiple financial institutions, you’re helping to protect it via compartmentalization. The reality is that protecting your money is not about where you keep the money. It’s about how you invest it. Staying up to date with multiple firms and what they’re doing with your assets is challenging and not particularly effective.

By consolidating your assets and choosing one wealth management firm, you can achieve:

  • Lower overall costs: Opening investment accounts across multiple firms costs money. The more you have, the higher the costs.
  • No duplicated investments: The more accounts you have, the higher the likelihood you’ve duplicated investments in one or more areas. This would reduce the diversification of your wealth.
  • Streamlined Administration: Dealing with one firm allows you to keep on top of paperwork. You can also keep track of how your investments are doing.
  • Simplified estate settlements: If your executor only has to deal with one wealth manager, it makes the settlement of your estates a lot easier.
  • Better and more powerful estate planning: It’s impossible to have a great, close relationship with multiple wealth managers. By choosing to deal with one firm, however, you can strike up a great partnership. By focusing your energy on one wealth manager, this firm will become intimate with your philosophy, your lifestyle, from where you derive your income, and your goals. A relationship like this will enable them to create a customized strategy for optimizing your estate and retirement.

With the right partnership, you can feel confident. You’ll know that your wealth manager is handling your money accordingly. Your ultra high net worth estate planning will be in the hands of someone who understands what you want to achieve and can help you get there.

Achieving the status of ultra high net worth individual is no mean feat, so give yourself and your wealth the respect you deserve. Ensure your estate is planned, protected, and preserved as effectively as possible.

Approval # CRN202302-278300