ITEMS TO BE COVERED
BASIS PREMISE OF THE WORK
REASONS IT IS IMPORTANT
FAMILY ECONOMY SOCIETY
NOVEL CONCEPT
REFER TO BACKGROUND
MENTION TAX
In general most people, after death, leave their assets to their children. There are instances where the parent has chosen not to leave anything to their children for various reasons
This is understandable
With good advice. the ages at which the assets are given, will be staggered.At say 21 or 24 or 30 or even older
In the meantime the assets would usually be sold and returns invested safely in various ways, generating an income
Sometimes conditions are attached to the gifts such as ............... we give some examples below
This is all very sensible
However rarely done people attach conditions to the gifts in creative and interesting ways
Of course, most people wish to save tax. Wills are arranged taking into account
Main Points
SET THIS OUT AS BOXES
IntroductionBest Things About IncentivesBest Things About Incentives
Incentives help us to :
State that this is really disbursing wealth with conditions1. Influence good behaviour
2 Good use of Wealth
3 Chance to leave more than wealth , can leave wisdom
4 Even toasters come up instructions
Manuals for WealthO
5 Chance to reflect and influence
Opportunity to Reflect
O6 most important get a chance to consider your values wishes heritage
7 Chance to consider psychological aspects which is rarely if ever done with trusts for taxation or indeed trusts in general other than assumptions about ages at which maturity might ascend
8. Good for economy society
Useful for the EconomyThe flowing current and how it is directed at presentGood for Society
O
Helpful for the CommunityO9 Chance for beneficiaries to glowEnriching for BeneficiariesO10 Other can benefit Benefit to OthersOCooperation with FamilyOWorking with FriendsO11 Can give consideration to cooperating with other family ,embers in estate planning which is rarely done
12 Expansion to other good ideas such as letters of wishes Letter Of WishesDo use of letters of wishes can be considerably expanded if you have incentives in mind before you prepare a letter of wishes once you've had a chance to consider incentive it might be to have help you to draft a suitable wish you look letter of wishes
13 BRing out the best in the best advisers
Enhance your Advisers-
14 There is excitement in the processThe Process is NovelO
The Process is Interesting and ExcitingO
15 Chance to do serious thinking about serious things
Serious thinking about Serious thingsOO
16 Fun to create incentives
Thinking and Doing Fun thingsO17 Chance to amend and get conversations going
18 That is work well can bring about as astonishing change for sosiety at large
19 Way of being able to direct where your wealth is spent
Chance to Direct where Wealth is spentO
20 Gives you an idea of how much your wealth is worthGiving an Idea of what you are worth financially and otherwise
Changing how you live you now
O21 Chance that BFs may do whilstyou are alive
22 To engage in conversations with children that do not usually engage in
CommunicationConsidering Incentives help with Communication between generations and with others
Chance for Family and Friends to be involved
Especially for those without their own children
Will make the beneficiaries stop and think
23 Chance for aunts uncles to get involved
24 Chance for those without children or others to consider invcentives
Charity
O25 Overall benefit to charity and good causes by the rich using wealth wisdomInnovation
OChance to do something great something unique
The best thoughts lead to the best deedsThere are common incentives and the more normal usual this becomes the more it will become accepted and the more it can achieveThis is a good start on the twentyPit above in some order
As go along can refine the list
Set out briefly the main way in which Incentives have been considered in the past
Jurisprudence
A whole new fieldCreativity
The use of lawyers and and other advisers
Drafting
O
The Counter ArgumentsAgainst the use of incentives
Taxation
O
The way Estate are normally planned
Set out what happens at presentBarely any lawyer in Britain has even know about this concept so they normally use the tolls which have been at their disposal for generations
Graph about inequality
A form of RationingOoUsing the existing law
Oo
Also set these out in boxes as well as narrative text with outlinesProbate
Chance to prepares things for the better bearing Incentives in mind
Mobility in Society
How to Deal with and cope
Advisers
Gives them a chance to be better acquainted with the beneficiaries
Process
Walks along rivers and discussions in RestaurantsLearn Manners
OoThe rich often go on about what the state spends the money but they do not see how best the actions of the bb and how to grow and improve society
A chance to take part in society rather than quibbling about what the state is doing
Here you are fairly free
3 Chance to leave more than wealth , can leave wisdomPeople don’t usually write manuals on how the wealth they leave should be wisely spentLiquidity
Many of the wealthy have their assets and money invested in assets which are not easily capable of being turned into actual ‘ liquid ‘ cash. Much of the wealth may be tied up in fixed assets such as land and property
The rest may be invested in various ways which require notice of withdrawal
Even if the asset could be quickly or easily sold the strategy of thinking long term means that assets are not often sold unless there is a chance and need for immediate profit or under duressMany of the wealthy are fairly content that they build up assets and investments and only have sufficient cash at the bank to meet regular expenses and sometime luxury purchasesConsequently when you hear of a multi millionaire leaving an estate of say £5o million pounds.Most of that will be in fixed assets.where the estate has been left on trust the investments are likely to remain much as before save for changes in the economy and views of risks and returns. However very little of the assets will be turned into ready moneyReasons
The reasons for this is that unless there there is a need for anything more than the regular expenses why sell assets . The resultant proceeds of sale will have to be either reinvested or spent.Given extravagances will be frowned upon by the trustees there is little chance of magnimanious disbursements for extravagancesWhere a beneficiaries become entitled to the estate absolutely, the estate assets will be theirs to do with as they wish.They may keep the existing fixed and non fixed assets or sell all or some of them. If they decided to to this in the example of the estate of £50 million pounds then they will have a vast sum to spend as they wishThe contrast is clear when compared to the situation of the person who left the money who is unlikely to have ever had that amount of ready money at his disposal.Whilst building up the wealth capital would not have been diverted for extravagances. So no need to have such ready money available
So how is a child even a mature adult child of say 30 going to be able to handle the fortune left , in this instance £50 million pounds when his parents would rarely have had free to spend liquid cash at the bank and no reason to scrimp or save or work or make any effortBlame
Yes can blame the child but then many in that position would take advantage of living a life of
decadence and luxury for some while at leastThe problem is that the way they spend and the way they live affects society
Example. Servants humans directed to serve the personal needs of another for money. Only because otherwise high paid jobs difficult to come by
Showered on many wastrels and idlers of the world the pedlars of fancy things at fancy silly evil prices as they have spent money on promotion and such to attract and fleece
And these not bad people as such and what chance a person of goodness in the midst of this chaos and the good are the ones to be preserved and protected
Many novels on murders in high place rare the film or book which is a serial on inheritances
Suppose will need to see if can do a serial book on thisCharity
How they work what to do
Not easy to give away moneyGiving
Not easy to give
How they work what to do
Not easy to give away money
to him when his parents had never been in this positionNot talking about inheritances of many generations ( see later )But of the many vastly wealthy fo today whose fortunes are brand shiny and newGRAPH of inherited v created wealth to see the goring number of self made fortunes
( define fixed assets )
Instructions4 Even Toasters come up Instructions
Explain how many simple items still come with a manual or online instructionsexplore the books on wealth and show that there are none which deal with spending money well and lavishly and gracefullyThey are about saving cutting expenses and investing for growthSay the estate is invested well and there is surplus money ( in so far as money can be regarded as surplus ) what is good guidance on spending it wellFor instance already have four homes don’t buy anotherhaving checked cannot find any instances of a manual written as to how to best use a substantial inheritancePeople may say that guidance is given during the curse of a life. This is mostly haphazard unless of course the beneficiaries are actively working with you in businessMost of the wealth of the rich is concentrated in shares in companies they have never worked with or for. These are distance investments, much removed from any real chance to text beneficiaries muchProblems Pitfalls
Explain the problems and pitfalls which come with spending mon eyeIe hire a butler but the at risk of exposure and another will know too muchBut a house there is the maintenanceBuild a basement swimming pool who will useAlso purchases to show off to to look rich and such likeLook at what the rich spend their money on and why and whether they would or should not haveOften no need to change the car or the dress but alter ones mind ones attitude ones reactionSo it also then comes to who they areMany of the beneficiaieres entitle and spoilt will have the drawbacks of that. Grouping
Have explore the ways that the rich spend money the see what common traits and conclusions can be drawn from that5 Chance to reflect and influence6 most important get a chance to consider your values wishes heritageTeaching the art of conversationManners not as in formal but how to be in harmony smile be joyful despite all as even those rare who care cannot do much that will ever be enough
How to get along with each otherIf can discuss maybe may resolve better togetherAnd if not at least will be united in face of others
Make much of fact that manuals for toasters which is fine but manuals for many worthless things but no manual for moneyAccounting and growth is only a prat of the story the history the future of money7 Chance to consider psychological aspects which is rarely if ever done with trusts for taxation or indeed trusts in general other than assumptions about ages at which maturity might ascend
Economy Society
8. Good for economy society9 Chance for beneficiaries to glow10 Other can benefit11 Can give consideration to cooperating with other family ,embers in estate planning which is rarely done12 Expansion to other good ideas such as letters of wishes13 Bring out the best in the best advisers14 There is excitement in the process15 Chance to do serious thinking about serious things16 Fun to create incentives17 Chance to amend and get conversations going18 That is work well can bring about as astonishing change for sosiety at large19 Way of being able to direct where your wealth is spent20 Gives you an idea of how much your wealth is worth21 Chance that BFs may do whilstyou are alive22 To engage in conversations with children that do not usually engage in
Will make the beneficiaries stop and think23 Chance for aunts uncles to get involved24 Chance for those without children or others to consider invcentives25 Overall benefit to charity and good causes by the rich using wealth25 Overall benefit to charity and good causes by the rich using wealth wisdom
28 INNOVATION
Chance to do something great something uniqueThe best thoughts lead to the best deeds
There are common incentives and the more normal us
There are common incentives and the more normal usual this becomes the more it will become accepted and the more it can achieve
This is a good start on the twenty
Pit above in some orderAs go along can refine the list The rich need to be housetrained otherwise will could up the whole place with their assets
Ain the world The way YOU LEAV ECAN MOVE FAR MORE THAN MOUNTAINS CAN AFFECT HUMANITY AT LARGE EXOCNOMY INDUSTRY CREATIVITY HARMONYAND WHY NOT A WELL BALANCED BSETS BETWEEN SEVERAL PEOPLE ANSD BB CAN CHOOSE
CHNACE TO CRAET JMANY JOINT BENEFUCAIRIES