Some of our clients are interested in preserving wealth for future generations, and in that regard, we sometimes recommend starting a family bank.
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Family banking is an estate planning tactic to help preserve wealth for generations to come. They can be structured in various ways to meet the needs of the family, however, they are meant to help benefit a group of family members.
If our clients give distributions to their children at the time of their death, they usually disappear quickly. Even if the child invests the money, it doesn’t actually transfer to future generations.
The family bank is a very useful tool.
Our clients with family banks are able to charge less interest on loans, set different policies than banks might have, and drive goals that are important to the family.
The average American pays more than $280,000 in interest expenses over their lifetime.
With family banking, interest helps grow wealth in a number of ways.
Borrowers will be charged less than if they went to the bank and the family bank earned interest.
Family banks can also provide some asset protection and possibly help reduce property tax liability.
If you’d like to think about preserving your wealth for future generations, instead of distributing any assets immediately upon your death, contact us today to discuss setting up a family bank.
Contact us today to help you get the right paperwork or to update your current property package. We will plan so you don’t have to worry about your future.
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