b"A s a family man and financial cumstances,ageandcharacter.abeneficiarytodistributethe advisorforMerrill-Lynch,Many of our clients use trusts toassets within 10 years as opposed Byron Soules 00 understands thepass inheritance, and we adviseto paying taxes on distributions importance of smart generationalthem to work closely with estateover the benefi ciarys lifetime. giving.Sincegraduatingfromplanning attorneys who can pro-Texas A&M University with a bach- vide counsel on their unique sit- For individuals who currently take elorsdegreeinmanagement,heuation. A trust is ideal for passingtheirrequiredminimumdistri-has worked with many families ininheritance due to creditor protec- butions(RMD)fromretirement Aggieland to help them achieve theirtion, potential estate tax savings,accountsanddonotneedthe financial goals. We sat down withprofessional management and theincome, it may be more advanta-Byrontogethisthoughtsontheability to incentivize certain behav- geous to make a charitable RMD value of wealth stewardship.iors from children or grandchildrendirectlytotheirfavoritechar-before they can access the trustity because this income, in most Why is good wealthassets. There are instances whereinstances, wouldnt be included in stewardshipan inheritance passes lump sum,the individuals taxable income.but that is the exception in our important? experience.How do you model The families we work with have made countless sacrifices, takenWhat estate planninggood fi nancial tremendous risks and overcomemistakes do familiesbehavior for your own significant obstacles to accumu-late their wealth. We explain thatmake? family?as challenging as it was to accumu- Lack of communication and insuf- My earliest memories involve my late those assets, the latter stagesficientlegacyplanningarekeyparents making sacrifices to give of wealth also demand as muchmistakes weve seen. The best timeto others. They have been very phil-attention. Its not enough to planto plan is yesterday. The next bestanthropic throughout my lifetime, for your assets during your livingtime is today. I constantly meetgiving even when they didnt have years. A good steward plans for thevery successful people who havemuch. This was extremely impact-preservation and distribution ofnot planned for the distributionful to me. My wife and I give to their wealth beyond their lifetime.of their assets. If you dont plan,charities annually and ensure our the government will take charge,kids understand why. From per-How much inheritanceand that goes about as good as itsonal experience, I cant overstate sounds. As for communication, wethe importance of involving chil-is enough? recommend family planning dis- dren in giving conversations at an That is entirely up to the individ- cussions to communicate what toearly age so they will understand ual. Some of our high-net-worthexpect upon your passing. Trans- the value of philanthropy and help clients are concerned with leavingparency greatly helps your heirsmake their communities better for too much to their heirs rather thanplan for their future. future generations when they are in notenough.Theirconcernsarea position to do so. often rooted in the idea that heirsWhat do you advise will lack financial responsibility.for assets ill-suited forFor more information on We have various tools to help our clients navigate these concerns,inheritance? planning for your family's legacy, including financial education forTax laws constantly change andcontact Angela Throne 03:their heirs. It takes a series of meet- can drastically impact inheritance. ings and dialogue before we canWe are not tax advisors, but, in gen-construct a viable plan. eral, donating retirement accounts979.845.8161to charities rather than individuals What are the best waysoff ers certain tax advantages. Oneplannedgiving@txamfoundation.comto pass inheritance?benefi t is that the charity does not pay taxes on the income received. *This article is intended to share general in-This depends on the clients objec- This is particularly important afterformationon planningandshouldnancial tives, the type of property involved,the recent passage of the Secureonly be referenced for general advice. Readers should seek professional guidance to under-and the beneficiarys specific cir- Act, which, in many cases, requiresstand the best plan for their individual needs. SPIRIT OF SHARING|FALL 2021|11"