How To Establish A Wealth Transfer Plan

Getting your financial house in order is an organized process just like seeing and treating patients.

1.     Forget investment products. Your goals are the primary driver of the rest of your financial life.

2.     Before you focus on investments, protect what you already have.

3.     After you’ve secured your assets, only then can you focus on building them further.

And that brings me to the final big area of your financial life you need to address in order to have a unified wealth management plan. And that’s wealth transfer, which is the efficient redistribution of your wealth after death and during life.

Notice that most people think of transferring their wealth after death via a will, but that’s only one aspect of wealth transfer. Wealth transfer encompasses 3 aspects of financial planning: estate planning, gifting, and education planning.

Let’s take a look at the relevant questions you need to answer to have an effective wealth transfer strategy:

1.     When was the last time I reviewed my will with an estate planning attorney?

2.     Alternatively, do I even have a will? (I know numerous physicians who don’t have a will, so if you don’t, then draft one…NOW!)

3.     Who are the executors, trustees, and beneficiaries in my will and are they still accurate?

4.     Do I have successor executors and trustees in my will?

5.     Are appropriate provisions in place for minor children, such as naming guardians?

6.     Have I titled my assets to minimize the chance of being subject to probate after I die?

7.     Have I titled my assets to minimize the effect of estate taxes upon my death?

8.     Will I or my spouse be subject to estate tax upon death?

9.     Are the beneficiary designations on my life insurance policies as I wish? Do I have secondary beneficiaries on my life insurance policies?

10. Do I have a durable power of attorney, a living will, and a power of attorney for health care?

11. Do I need to buy permanent life insurance for liquidity purposes upon my death?

12. Do I need to start a gifting program during life to remove assets from my estate?

13. Am I giving to charity in the most income tax and estate tax efficient way?

14. Do I have provisions in my will to give my wealth to my favorite charities (for philanthropic reasons and for estate tax reasons)?

15. What types of trusts do I need to set up during life and after death for estate tax minimization, asset protection, and for appropriate distribution of my wealth?

16. What types of college funding vehicles are most tax efficient and how much do I need to save for my children’s education to meet their college funding requirements?

That rounds out a good list of questions that you need to address to get your entire financial life and wealth management plan in order—from wealth protection to wealth enhancement and ultimately to wealth transfer.

But, as they say, that’s just the beginning. Now it’s time to start implementing strategies to meet your goals. And that’s what I’m going to help you with from here on.

About the author

Setu Mazumdar, M.D.

One Comment

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  • I would like to give my adult son a hundred thousand dollar gift. As I understand it
    each parent is allowed to give a child $13,000. and if I give more than this amount
    then I need to file an IRS form so that the amount can be deducted from my
    future estate tax exemption of five million.


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