Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

Inheritance Choices: What Will You Leave Behind?

The opinions expressed in this mate-

rial are for general information only

and are not intended to provide spe-

cific advice or recommendations for

any individual. To determine what

may be appropriate for you, consult

your financial advisor.

Inside this issue:

INHERITANCE CHOICES: WHAT WILL YOU LEAVE BEHIND?

1-3

CONTACT US 4

OFFICE NEWS 4

COMMUNITY EVENTS 5

History is full with examples of parents taking actions they believe will im-prove the lives of future generations. In 1780, then President of the United States, John Adams wrote to his wife: “I must study Politicks and War that my sons may have liberty to study Math-ematicks and Philosophy. My sons ought to study Mathematicks and Philoso-phy, Geography, natural History, Naval Architecture, navigation, Commerce, and Agriculture, in order to give their Children a right to study Painting, Poet-ry, Musick, Architecture, Statuary, Tapestry, and Porcelaine.” The underpinning for an improved future may be found in the bedrock of an enduring political system, a free country, a strong work ethic, a superb edu-cation, or elsewhere. The 2014 U.S. Trust Insights on Wealth and Worth re-port found six in 10 wealthy Americans believe it is important to leave a fi-nancial legacy for the next generation. If you intend to provide heirs with fi-nancial bequests – and you want to preserve family harmony – it’s important to clearly understand the story your inheritance choices will tell your heirs. What is equal in the context of family? One of the most challenging aspects of planning an inheritance is families are complicated. American families are varied throughout the country but their members tend to fall into one or more of a few broad categories. According to the Key Findings Report in the 2014 U.S. Trust Insights on Wealth and Worth: Single person: About one-fifth of wealthy participants, in a recent survey, had never married or had not remarried after being divorced, separated, or widowed (a small percentage are cohabitating). Traditional marriage: About three-fourths of affluent Americans are in their first marriage and two-thirds have children.

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Volume 4, Issue 9

September 2014

Lifestyle & Financial Newsletter

Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

Blended marriage: The Silent Generation (24 percent) and Baby

Boomers (17 percent) are more likely than younger generations to

have blended families, meaning they have remarried after being

widowed or divorced and may have step-children.

Multi-generational household: Generation X (11 percent) and

Millennials (32 percent) are more likely to live in multi-generational households, meaning they have

either live with siblings, parents, or grandparents, or have adult children, parents, or grandparents

living with them.

In the context of family, what seems like the simplest choice – dividing assets equally among all of

heirs – becomes quite tricky because equality is in the eye of the beholder. A grown son may be-

lieve he deserves a bigger slice of financial pie because his family has the most children. A daughter

may believe she deserves more because she was the primary caregiver when you were ill. Mix sub-

jective judgments about fairness with the complexities of modern American family structure and in-

heritance issues can become quite touchy.

Minimizing inheritance disputes

Determining an equitable division of assets is never easy, not even for single parents or couples in

traditional families. One child may suffer a disability, have an addiction problem, run the family busi-

ness, be less successful than siblings, or have made life decisions parents are uncomfortable sup-

porting. If your family circumstances necessitate an uneven distribution of assets, there are a myri-

ad of ways to try and minimize the conflicts that may accompany the decision. These include:

Acting discretely. If you’ve decided an unequal division of assets is necessary and know your chil-

dren will not be happy with your decision, consider establishing a discreet trust for each child. The

advantages of discreet trusts are they can be funded unequally and each one can have completely

different distribution triggers and incentives. In addition, each child will only be apprised of the pro-

visions of his or her trust unless the information is shared. Make sure the assets that will fund each

trust are properly titled. (continued on pg 3)

Inheritance Choices: What Will You Leave Behind?

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VOLUME 4, ISSUE 9 Page 2

Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

Establishing a shared trust. If you distribute the majority, but not all, of your estate equally among heirs, the remainder (perhaps one-fifth or one-quarter of the assets) can fund a shared trust to be used when an heir has an emergency need. The trust should have an objective third-party trustee who will be responsible for distributing funds fairly. Choosing your executor carefully. Some say it’s best to follow family hierarchy and make your oldest child executor. Others say it’s best to choose a family member who is organized, hardwork-ing, honest, and a good communicator. Still others will suggest you appoint a committee of execu-tors because of the checks and balances a group provides. No matter what you decide, make sure everyone understands your choice. Explaining your thinking. The difference between family harmony and an ongoing feud may be determined by how clearly you communicate with your family. The Wall Street Journal suggests, “Whenever possible, try to be open about your inheritance plan while you are still alive, so every family member truly understands it, minimizing the chances for sus-picions to arise later. If you don't want to have this difficult conversation while you are alive, you can write a letter or make a video elaborating on the reasons and thought process behind your plan and making it clear that these decisions are yours alone.” There is no right or wrong answer when it comes to inheritance. Parents will make decisions based on their knowledge of family dynamics and individual needs. The AAII Journal suggests taking “a multi-faceted approach that combines psychology, good lawyering, a lot of self-awareness, and a good dose of common sense.” If you haven’t recently, you may want to review your will and estate plans with your financial advisor and/or attorney. Sources: h�p://harvardmagazine.com/2011/03/quotable-harvard

h�p://www.ustrust.com/ust/pages/insights-on-wealth-and-worth-2014.aspx (Brochure, page 8)

h�p://www.ustrust.com/ust/pages/insights-on-wealth-and-worth-2014.aspx (Key Findings Report, pages 5-6)

h�p://online.wsj.com/news/ar%cles/SB10001424053111903648204576554620047917688

h�p://www.fa-mag.com/news/playing-favorites-16512.html?sec%on=105

h�p://www.aaii.com/journal/ar%cle/19-recommenda%ons-for-minimizing-inheritance-conflict?adv=yes

h�p://www.nolo.com/legal-encyclopedia/avoiding-fights-over-your-estate.html

This information is not intended to be a substitute for specific individualized legal advice. We suggest you discuss your specific situation with a qualified legal advisor.

The above material was prepared by Peak Advisor Alliance.

Inheritance Choices: What Will You Leave Behind?

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VOLUME 4, ISSUE 9 Page 3

Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

Office News

Money doesn’t come quickly or easily, it comes only with persistent hard

work done continuously over an extended period of time.

There is no easy way to be successful.

- Brian Tracy

4160 Washington Road Suite 1

McMurray PA 15317 Phone: 724-942-3300 Fax: 724-942-3313

Email: Edward.harris@lpl.com Jamie.blayney@lpl.com Sara.kersnick@lpl.com

www.facebook.com/harriswealthmanagement

@HarrisWealthMgt

www.linkedin.com/edharrisandharriswealthmgmt

VOLUME 4, ISSUE 9 Page 4

“I have retired over 200 times,

so you only have to retire

once!” ®

— Edward J. Harris, CPA

We’re on the web: www.harriswm.com

4160 Washington Road Suite 1

McMurray PA 15317 Phone: 724-942-3300 Fax: 724-942-3313

Email: Edward.harris@lpl.com Jamie.blayney@lpl.com Sara.kersnick@lpl.com

Jamie Blayney, our Office Manager, has recently returned from San Diego, California, where she at-tended the LPL Focus ‘14 Conference. Jamie attended a session featuring Jim Collins, the author of “Great by Choice,” as he spoke about how to go from being good to being great. She also got to attend Dr. David Kelly’s “From Cyclical Recovery to Slow Expansion: A Guide to the Markets”. In ad-dition, Jamie attended a session entitled “Five Mistakes Teams Make and How to Avoid Them” sponsored by Alliance Bernstein. Along with attending the conference Jamie got a chance to take in the sites including a dinner cruise and a baseball game sponsored by some of our Variable Annuity companies. Since returning, Ed and Sara have been utilizing all that Jamie learned to try and better serve our clients.

We will be closed Monday, September 1, 2014 in honor of the Labor Day holiday

We will reopen on Tuesday, September 2, 2014

We will be closed on Tuesday, September 16,2014 for our staff retreat

We will reopen on Wednesday, September 17,2014.

Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

Covered Bridge Festival September 20th-21st

Washington & Greene Counties

The children are back in school and the last of the summer

holidays are behind us. Not to worry, fall is a great time to

get out and about in the community. Festival season is up-

on us! From craft shows, to bridges, to Oktoberfest, there’s

something for everyone this month. We hope you get a

chance to get out and enjoy all that our communities have

to offer this September!

September 1st-6th West Alexander Fair Route 40—West Alexander

September 13th Beatles 50th Anniversary Tribute Benedum Center—Downtown Pittsburgh

September 14th Grandparent’s Day Dinner The Springhouse—Washington, PA

September 14th Trucks, Tractors & Trolleys PA Trolley Museum—Washington, PA

September 18th Senior Expo Washington Crown Center—Washington, PA

September 19th-21st PA Bavarian Oktoberfest Pike Street—Canonsburg, PA

September 19th-21st ARH Gun Show & Sales Washington County Expo Center

September 20th-21st Covered Bridge Festival Washington & Greene Counties

September 23rd-October 5th The Book of Mormon Heinz Hall—Downtown Pittsburgh

September 27th-28th Cecil Township Fall Festival Cecil Park—Cecil, PA

September 27th-28th Trax Farms’ Fall Festival Peters Township, PA

Community Events

Annual festival held the third weekend in September - rain or shine - to celebrate autumn in Wash-

ington and Greene Counties with crafts, food, entertainment, children’s activities and historical

reenactments. Free admission.

When: Saturday—10:00AM to 5:00PM & Sunday—12:00PM to 5:00PM

Where: Various covered bridges in Washington County , PA and

Greene County, PA

For more details visit:

Washington: http://www.visitwashingtoncountypa.com/

Greene County: http://www.vicoa.com/greenecobridges/

http://www.co.greene.pa.us/

VOLUME 4, ISSUE 9 Page 5