The Complexity of Inherited Wealth
Wealth can come to someone in many ways. Some people are born with money and some earn it over a lifetime.
Then there are those who inherit their wealth by the passing of a family member or selling of a business. If you haven’t managed large amounts of wealth before, however, understanding the complexity of inherited wealth is an enormous task.
There are psychological and logistic reasons for the overwhelming feeling of inheriting wealth. Even though it is an increasingly common event, this is a topic that is rarely talked about.
So, let’s get the conversation started about the complexity of inherited wealth.
Logistics
There are new responsibilities that come with inheriting wealth. The list is never-ending. This is why financial planning is a pillar of Centura Wealth and is highly recommended to those who suddenly inherit large sums of money.
Some key elements of financial planning include:
- Excessive Fees from other professionals
- Tactical Gaps (like planning for the future)
- Hidden Risks and Costs
- Erosion (gradual redirection of funds)
- Taxation
Psychology
When individuals inherit large sums of money, often, their morals are put to the test. This is completely normal. Perhaps before inheriting money, you had a vision of what you might do with this extra wealth. For example, donating a large percentage. But now, you might feel differently.
Wealthy families carry wealth burdens. Some aspects that come with this burden include:
- Worry
- Generational Degradation
- Relationship Dynamics
- Responsibility
- Guilt
Centura Wealth Advisory believes there is a balance in liberating your wealth, and our clients can testament to that. We’ve worked with many families whose net worth exceeds $10M, who have complex financial lives, circumstances, and strategies.
These are some of the expressions Centura Wealth has heard our clients say:
- “We don’t want our wealth to ruin our kids’ lives,”
- “We want our wealth to foster happiness and purpose,”
- “We realize we have a great responsibility to serve our family, and our community,”
- “We want our wealth to improve the lives of people who are less fortunate.”
What’s Next?
Talk to a wealth advisor for further steps after inheriting wealth. The list of key elements that contribute to financial planning is long. Just a few to consider depending on your financial situation are retirement plans, long-term financial goals, and investment.
“We believe everyone has a purpose in life, and ours is to help wealthy individuals and families achieve their purpose through a proactive and comprehensive wealth management process called Liberated Wealth®.”
Centura Wealth does not make any representations as to the accuracy, timeliness, suitability or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.
We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.
For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.
