• Wes Bloomquist •
• Originally published January 3, 2009 at 5:50 p.m., updated January 3, 2009 at 5:50 p.m.

An unprecedented amount of wealth is expected to be transferred to heirs over the next 50 years. Deciding how much, when and in what form wealth will be transferred can be difficult.

Experts in the field of wealth transfer expect $41 trillion (in 1998 dollars) to be gifted to heirs and charity through 2052.[1] Grantors may make gifts throughout their lifetime or through their will.

"Estate planning is key," says Carlton Brown, Estate Planning Specialist with Wachovia Securities. "The process captures everything, including the way you own, accumulate, conserve and transfer assets."

Involving your Financial Advisor, your estate-planning team and your heirs in regular discussions about changing circumstances and your intentions will help you develop an estate plan that reflects your priorities and current goals.

Build an Estate-Planning Team

Depending on the complexity and size of your estate, the number of experts you will need to help devise a solid wealth transfer plan will vary. "People with a simple estate and a desire to provide for a surviving spouse and/or children can craft a good plan with an experienced estate-planning attorney and their Financial Advisor," Brown says.

As your estate becomes larger or more complicated, however, "an estate-planning quarterback or coordinator becomes essential," he explains. You need one person who knows how all the parts of the plan fit together, understands who plays what role in the process and can follow up with the team. You can simplify your planning process by selecting a variety of services through one source. The following professionals offer different skills that can help round out your team:

Estate-planning attorney

Financial Advisor

Certified public accountant

Banker or trustee

Insurance provider

For Business Owners

If you are a business owner, your estate-planning team can help you develop a comprehensive succession plan. This can help in protecting the value of your assets upon your death and ensuring the ongoing operation or market-value sale of the company.

If you plan on leaving a business to family members, ideally you should discuss your succession plan with your heirs and make sure they are on board with it. With strategic planning, such as incorporating the use of life insurance, you can designate assets to cover taxes, a partner buyout or bequests to heirs who are not involved in the business.

Review Your Estate Plan

You should review your estate plan regularly, as well as during life changes such as marriage, separation, divorce, birth of a child, death in the family, job change or inheritance. Additionally, changes in federal or state tax laws may impact your investment contributions, short-term goals and legacy planning.

Most estate plans are reviewed every three to five years, Brown says. "But the timing depends on the complexity of your plan. If you have fluctuating assets or a charitable giving strategy, your estate may require an annual review. Circumstances in your future heirs' lives may prompt a revision in your estate plan too."

For example, if a child or heir becomes incapacitated or chronically dependent, you may decide to redistribute your assets or make special provisions through a trust to ensure perpetual care or support. If you have a trustee, it is important to notify him or her of any updates or new objectives in your estate plan that will affect the administration of the trust. Whether you decide to inform future heirs of changes to your estate plan is up to you - but consider the impact on their life as you make your decision.

Hold a Family Meeting

Defining and clarifying your estate goals for your heirs is important to the long-term success of your plan. Express your intentions to several heirs to reduce the contestability of your will based on claims of fraud or duress. "This is especially important if you plan to intentionally disinherit a family member," Brown says.

A family meeting is a good place to introduce your executor, trustees and key advisors who are responsible for carrying out your estate plan and/or your business succession plan. Follow up after the meeting with a written summary of what was discussed to support the distribution of your estate as you intend.

By being strategic and thorough in your planning, and by working closely with your financial advisor, you can help your heirs significantly while protecting your estate and your intentions.

Wachovia Securities does not provide tax or legal advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences.

Insurance products are offered through nonbank insurance agency affiliates of Wachovia and are underwritten by unaffiliated insurance companies. Wachovia Securities, LLC is a separate non-bank affiliate of Wachovia Corporation. 0807-60308

Together, we can discuss:

Transferring wealth directly to select heirs through beneficiary designations and asset titling.

Using insurance to help protect the value of your business and cover estate taxes.

Gifting strategically throughout your lifetime to transfer wealth and reduce estate taxes.

This article was provided by Wachovia Securities, LLC. Member SIPC, a registered broker-dealer and separate nonbank affiliate of Wachovia Corporation and Robert Martin and John Martin, Financial Advisors with Wachovia Securities located at 5606 N. Navarro, Ste. 101, Victoria, TX 77904 (361)576-0055.

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