Generational Wealth and Estate Planning

Estate Planning, Family, Kids

Managing generational wealth and planning for what happens to your assets after you pass away can be a great way to help future generations in your family. A well-thought-out estate plan can be a love letter to your children, their children, and beyond. Individuals inheriting generational wealth can have many advantages, including the chance to avoid debts such as student loans. Generational wealth assets can include many different types of investments, including:

  • Real estate
  • Stocks
  • A family-owned or professional business
  • Bank accounts
  • Valuables
  • Land

However, planning for generational wealth is so much more than just estate planning. Estate planning typically involves deciding who will receive your property after your death and who will handle your affairs should you become incapacitated. It typically does not provide for what happens after your heirs receive their inheritance. A written generational wealth plan, however, can take care of future generations and make the most of your assets.

Passing on financial security to not just one generation, but potentially many others can be a great act of love and selflessness. Ibekwe Law, PLLC can help you make the best of your estate plan and include provisions for generational wealth planning. Contact us now at 512-505-2753 for a complimentary discussion and evaluation of your estate planning needs.

Generational Wealth Planning

Rather than keeping your aspirations for generational wealth planning to yourself, it can be beneficial to involve your entire family in the process. Together, you can discuss and devise a vision and strategy for how to build a family legacy. Talking about your generational aspirations with your loved ones, rather than deciding on a plan on your own, can bring the family closer together and lead to some meaningful and heartfelt conversations. Involving all your loved ones can also make them appreciate their responsibility for ensuring that future generations will benefit from generational wealth.

Maintaining Generational Wealth

Maintaining generational wealth can be tough. According to a NASDAQ report, 70 percent of wealthy families lose their assets by the second generation, and a staggering 90 percent by the third. According to a Prosperity Now report in 2017, Black people are on track to reach zero wealth by 2053! If you want to avoid this and continue passing on love and financial stability to your children, their children, and potentially beyond, you will have to consider how to keep and grow wealth. Some of the considerations can include:

  • Generational tax planning
  • Generational investment management
  • Education planning for following generations
  • Strategies for generational risk management

You may also want to consider placing some restrictions on how your money will be accessed to prevent individuals from “squandering away” funds on frivolities such as fancy cars and luxury vacations, for example. You may want to ensure that the money will instead be spent on education, setting up a business, or on other lasting benefits.

Concentrating on education and business ventures can help your descendants with creating their own wealth and “add to the pot,” which in turn can increase generational wealth for future generations rather than depleting funds. You can discuss with your family and memorialize in writing each generation’s responsibility to help the next one. Next generations should receive the same opportunities while maintaining wealth and increasing the value of the estate. Consult with an experienced estate planning attorney to determine how you could maintain generational wealth for many decades to come. Call Ibekwe Law, PLLC for help with your estate plan today.

Growing Your Assets Through Generations

While maintaining generational wealth will be an important goal of a generational estate plan, you may also want to ponder how your assets could keep growing through the generations. Life insurance benefits, for example, can be an excellent tool for helping to ensure the growth of generational wealth. Death benefit typically pays out a tax-free lump sum when the policyholder passes away. The beneficiaries can then potentially use the lump sum to purchase new life insurance policies for themselves, thus passing on benefits and wealth to the next generation.

Having a bulletproof legal framework in place can also help to grow your assets. Devising a solid plan with an experienced estate planning attorney can be crucial. Your attorney should have a complete understanding of the strategies that can be employed to ensure generational wealth keeps growing and benefits several generations and not only the generation after you.

Factors to Consider if You Are a Beneficiary

Inheriting wealth can mean inheriting a huge responsibility. If you benefited from generational wealth or inherited a considerable amount of assets, you may be wondering how you can pay it forward to those coming after you. Looking out for future generations can be a wonderful way to show your love and care for your descendants. It is never too early to start planning for the legacy you wish to leave behind. Having recently inherited assets or valuables can be an excellent time to speak to an estate planning attorney who can advise you on making the best of the assets you have received.

Things you may wish to consider when you intend to build generational wealth for your family can include:

  • Funding education of future generations
  • Reducing the tax burden for your descendants
  • Protecting wealth with adequate management such as trusts
  • Charitable giving considerations

The sooner you can start protecting your assets and growing generational wealth, the greater the benefits will be for your children and any following generations. Consider also that your children and grandchildren can benefit from your plan. For example, you can fund their education and help them develop their own businesses or stay out of debt.

Ibekwe Law, PLLC Can Help You with Generational Wealth and Estate Planning

If you intend to give future generations in your family the opportunities and financial support you believe they deserve, establishing a generational wealth estate plan can be an act of love that keeps on giving throughout the generations. However, generational wealth planning can be complicated and full of potential pitfalls.

If you want to avoid the statistics that indicate your wealth could be lost within a generation or two, having professional help can be crucial while estate planning. Your estate planning attorney will also ensure that your plan is drawn up correctly and valid under state law. Ibekwe Law, PLLC can help you with all the important estate planning steps for future generations, including making a will, planning trusts, and ensuring that your descendants pay the least amount of taxes possible. Call us today for a free consultation, and we can advise you on how you could leave a lasting legacy for future generations of your family: 512-505-2753.