Wealth preservation is an important consideration for people who have been very successful throughout their lives. You have to understand the fact that the federal estate tax is sitting poised to consume 40% of the taxable portion of your estate.
Here in the state of Connecticut we also have a state level estate tax to contend with, so the potential for erosion is considerable.
Estate planning attorneys can provide assistance to those who are looking for ways to obtain estate tax efficiency. This can include long-term wealth preservation strategies that are intended to keep the resources in the family over multiple generations.
It would be easy to assume that people who are in a position to leave behind tens of millions or even hundreds of millions of dollars to their loved ones would be able to provide permanent comfort. Surprisingly, statistics tell a different tale.
70% of inherited wealth is typically gone by the end of the second generation, and by the third generation’s the average amount that is left is 10% of the original family fortune.
There are various different reasons cited for this rather rapid erosion of wealth. In many cases the individuals inheriting the money are not particularly skilled at handling it. There is also a tendency toward complacency, the feeling that there is no reason to go out and create new streams of fresh revenue.
Clearly, the key to wealth preservation is careful planning with the benefit of expert guidance. Should you be interested in discussing wealth preservation strategies with an expert contact our firm at (860) 548-1000 to set up a free consultation.