Wealth planning

Life can be unpredictable.

A plan for your wealth may not be at the top of your agenda, but should an unforeseen event take away your control, a plan could be the key to unlocking your legacy and ensuring its efficient transfer to those whom you love the most.

Here are three key steps to help you design your plan - and it all starts with A, B, C.

A is for “Access to Assets”

Start by making an inventory of your assets.

Review how these assets and accounts are owned.

If there are bank accounts in multiple jurisdictions, review who has authority over them.

Take note of accounts where you are the only person who is authorized to make investment decisions and withdraw funds.

This will enable you to determine the appropriate legal processes to effect transfer and grant access, in case you are incapacitated or pass away.

B is for “Beneficiaries”

Think about: Who will be my beneficiaries?

When do I want them to benefit from my assets?

Where do they live?

Once you have identified your intended beneficiaries, you can then decide how you want to distribute your assets.

You can express your intentions through a Will or other legal arrangements to transfer ownership to your loved ones.

Whereas not planning for your estate may result in your assets being distributed according to intestacy laws.

C is for “Complexity”.

Complexity could impact your intended plan and it can arise from the type of assets you wish to give, how they are currently owned, or in relation to your intended beneficiaries.

Have you considered what happens if your Will is not recognized in some countries?

Where assets are located in multiple jurisdictions, you should think about the various laws that may apply to the ownership and transfer of these assets.

If your intended beneficiaries are residing in high or complex tax jurisdictions, have you considered the impact of taxes on them?

Special planning with the assistance of legal and tax advisors may be needed to achieve a tax-efficient transfer to them.

Finally, have you considered the impact on your family if there are disputes?

If your beneficiaries have specific needs, how may probate affect them?

Is there a need for confidentiality?

Where there are complexities, Trusts may be used, as a simple Will is often not sufficient.

The use of Trusts can help to ensure that your loved ones are well provided for.

So, why not take the time now to think about Access, Beneficiaries, and Complexity, and start designing a succession plan for your family today?

If you have any questions or wish to have a discussion, please reach out to your J.P. Morgan Private Bank advisor.

Trust can be a useful and versatile tool, especially if you have complex goals and objectives when leaving your legacy.

Will can transfer your assets to an intended beneficiary but a Trust offers a holistic solution for international succession and estate planning and offers three important benefits.

Trust can provide for your beneficiaries.

If you plan for your wealth to be distributed over multiple generations, or are concerned that your beneficiaries would need independent supervision when receiving a large inheritance, you should consider a Trust with a professional corporate Trustee.

In particular, an institutional Trustee, such as a J.P. Morgan Trustee, will have the operational independence and resources-to care for your beneficiaries and execute your wishes during and after your lifetime.

The Trustee can also administer your Trust to be consistent with legal and tax requirements, to help you achieve a tax-optimized distribution to your intended beneficiaries.

Trust can protect your assets.

Wealth that you have worked hard to accumulate over decades can be lost through legal claims, perhaps from legal creditors or from marital disputes faced by your beneficiaries.

If you have these concerns, you may consider a Trust structured to protect your assets.

A properly established and professionally administered Trust could provide you and your family with the protection you desire.

However you may have to sacrifice a level of control and so Trusts should always be established with legal or tax advisors to tailor the structure to your specific needs.

Trust can provide privacy and confidentiality.

If a Will needs to go through legal probate processes across multiple jurisdictions or is challenged by disputes and conflicts, there is a chance that the Will, which was prepared privately and in confidence, would be made public upon your death.

Therefore, if you want to avoid these risks and transfer assets in several locations in a confidential manner, you can settle those assets into a Trust during your lifetime.

Also if you wish to provide for a certain beneficiary in exclusion of others, you could establish a Trust specifically for that person.

With proper planning these assets would not form part of your estate and distributions can be done privately by the Trustees without the knowledge or involvement of family members or the court process.

So why not take the time to think if a Trust is right for you and start making a plan to leave your legacy today.

If you wish to achieve any of these outcomes for your wealth or would like a better understanding of how a Trust can address your needs, please speak to a J.P. Morgan wealth advisor.