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Powersports Business • November 2024 • 11

BY BRAD STANEK AND PAULINA MATEL CONTRIBUTING WRITERS

Ask ten ‘ wealth managers ’ to define wealth management , and you ’ ll likely receive ten different answers , mostly centered around investing . However , in this article series , we aim to present an alternative , comprehensive definition on wealth management that encompasses a full spectrum of strategies that we call advanced planning . While proper investment consulting is crucial for generating portfolio returns , what if we include tax minimization , thoughtful estate planning , and wealth protective strategies as well , to propel your wealth forward ? We classify these strategies into four pillars : Wealth Enhancement , Wealth Protection , Wealth Transfer and Charitable Giving . Join us for a four-part article series where we delve into strategies for wealth planning in each of these crucial areas . potentially affect your wealth . We believe that strong estate plans involve two key components : technical expertise and the human element .

TECHNICAL EXPERTISE Exceptional estate planning requires exceptional technical expertise about estate planning laws , rules and strategies ( some of which can be very complex ). The tools and techniques of exceptional estate planning can range from the basic to the cutting edge . From the technical side , some estate planning strategies and tools you might consider are :

Trusts . In many ways , trusts are often cornerstone solutions for many successful individuals and families . A trust is a means of transferring property using a third party ( the trust ). Specifically , a trust lets you transfer title of your assets to trustees for the benefit of the people you want to take care of-also known as your designated beneficiaries . The trustee will carry out your wishes on behalf of your beneficiaries .

Partnerships . As with trusts , there are many types of partnerships . They can determine how the partners of a business address ownership issues , and they have varying tax benefits . For example , within the business world , disharmony among family members or unrelated business partners can mean a higher tax bill if the owners are forced to divide assets among the partnership ’ s members . Through the use of sophisticated partnership structures , business owners can divide their companies and possibly reduce taxes .

THE HUMAN ELEMENT The true goal of exceptional estate planning is to transfer your wealth in accordance with your wishes . The role of an estate is to make it possible for you to achieve your desired agenda and to be as tax efficient as possible in pursuit of that agenda . That ’ s where

See Morgan Stanley , Page 13

WHEN IT ’ S TIME TO UPDATE YOUR ESTATE PLAN

Estate planning , the process for how you transfer your wealth to heirs and others , can be very important for anyone who wants to be certain that their loved ones are adequately provided for and taken care of .

Chances are , you know this and have an estate plan in place . But , if you think your current plan is where it needs to be , you might want to think again . We often find that the estate plans that affluent individuals have in place are more than three years old . Some reasons why that ’ s a potentially big problem are the following :

Continual changes in tax laws mean that older estate plans may not take full advantage of current opportunities to transfer assets optimally .

Tax law changes could mean that some aspects of an older estate plan are no longer effective .

Changes in your wealth status mean that your estate plan may no longer accurately reflect your financial situation .

Changes in your personal and family situation may make your estate plan ineffective in accomplishing what you actually want it to do given those changes .

The upshot : It ’ s a good idea to stay on top of your plan and revise it when appropriate – especially when events occur that could

It ’ s a good idea to stay on top of your plan and revise it when appropriate - especially when events occur that could potentially affect your wealth . We believe that strong estate plans involve two key components : technical expertise and the human element .