You want to prepare well for leaving your assets behind. This is a process that can sometimes be emotional and difficult to oversee. Wealth Planner Ragna Poulissen explains how she informs clients about this.
You want to prepare well for leaving your assets behind. This is a process that can sometimes be emotional and difficult to oversee. Wealth Planner Ragna Poulissen explains how she informs clients about this.
‘The biggest pitfall I see is with clients who think they have properly arranged their estate because they have a will’, says Ragna. ‘But whether a will is 10 or 20 years old, or whether it is a recent will, often the arrangement does not fit well. It does not always meet the wishes of the person who drew up the will or opportunities to save on inheritance tax are not utilised.’
‘For instance, taxes can be saved by not immediately leaving the assets to the children, but by first allocating the entire property to the surviving parent. The children then get a claim on the surviving partner, on which the surviving partner must pay interest. This interest does not actually have to be paid, but may be credited on paper. Upon the death of the surviving parent, the children will receive this accrued claim tax-free.’
‘Another way to save taxes is to have business assets inherited favourably. I always advise clients to carefully review their will every five years.’
‘When I talk to clients about their estate, the emphasis is often initially on saving inheritance tax. But if I dig a little deeper, personal motives always come to light too. Think of children who are not good with money. Or bequeathing assets properly to mentally and psychologically challenged children. Our clients are concerned about this. If you listen carefully and contribute ideas, you touch their hearts. It’s hugely reassuring for them.’
‘That's why I always start the conversation by taking stock of my clients’ personal and financial situation’, says Ragna. ‘I also look at what has already been arranged and what the goals and wishes are. Based on this and the questions I ask, I cover different aspects of their estate planning. I look at how a relationship is structured and whether it has been formalised on paper in a cohabitation contract or prenuptial agreement. I then check whether there is already a will and what the areas for improvement are. I also discuss whether arrangements have been made if someone is no longer able to act independently. And whether the wish is to transfer assets during life. For an entrepreneurial client, I also check whether the articles of association and shareholders’ agreement are in line with the will.
‘I see that people do not quickly ask their children for input when arranging their estate. Of course, this concerns equity that they have often built up themselves or family assets that they have inherited. It is not always necessary, for example, if there is one parent left and the money goes to the surviving parent first.’
‘I also encounter parents who want their assets to remain in the family, so do not go to in-laws. When making such major decisions, it is advisable to discuss them with each other. Otherwise, situations may arise in which some of the assets go directly to the grandchildren, even though this is not desired.’
When one of the parents in a family passes away, there is of course a great deal of sadness. A lot of emotions are involved. I talk to the surviving parent and possibly the children and inform them about the options for settling the estate as well as possible. I recently spoke to a contact where she emphasised that she really appreciated our help. The woman lost her second husband. Together they had children, but her husband also had children from a previous marriage. These are sensitive topics.
‘I see that clients increasingly want to transfer wealth to their children in a protected way so the children cannot yet access it. Parents want children to develop normally and continue to do their best. The fear is that their children will become complacent due to a gift or inheritance. I thus see many clients first transfer the amount exempt from gift tax. This often happens under supervision until, for example, the age of 25.’
‘I often find that I can add value by translating complex processes and rules to the client's situation. I don’t do this alone, but with several colleagues. Together we are the largest department in the country that does this work. What characterises us is our notarial and fiscal background, supplemented with our social and empathetic approach. This combination enables us to help our clients through difficult times. A client once called me his “financial psychiatrist”. That’s really nice to hear.’
