Some of our clients are interested in preserving wealth for future generations, and in that instance, we sometimes recommend starting a family bank.
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A family bank is an estate planning tactic to help preserve wealth for generations to come. They can be structured in a variety of ways to meet that family’s needs, however, they are intended to help benefit a group of family members.
If our clients give their children distributions at their death, it is usually gone quickly. Even if the child invests the money, it does not really transfer to future generations.
The family bank is an incredibly useful tool.
Our clients with family banks are able to charge less interest for loans, set different policies than a bank may have, and encourage goals that are important to that family.
The average American pays over $280,000 in interest fees during their lifetime.
With a family bank, interest helps grow wealth in multiple ways.
Borrowers will be charged less than if they went to a bank and the family bank accrues the interest.
Family banks can also provide some asset protection and possibly help reduce estate tax liability.
If you want to think about preserving wealth for future generations, instead of distributing any assets outright at your death, call us today to discuss setting up a family bank.
Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.
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