With a proper estate plan, your family wealth can last for generations to come. After all, that is why you work so hard – to ensure that your family and future generations are better off after you are gone. Contrary to popular belief, generational wealth planning is not something that only the uber-wealthy do. Instead, it is for everyone who cares about their family’s legacy and financial security decades or even centuries down the line.
However, it is not as straightforward as it may sound. For example, you have probably heard about third generations wasting away family wealth since they do not know the hardships of acquiring it. On top of that, the economic uncertainties of the future can make generational planning a bit complicated.
Think ahead, way ahead
Generational wealth planning requires foresight beyond your kids and grandkids. Planning far ahead of time is essential since the whole point is passing your family wealth to generations. It may be necessary to explore trusts as a way of protecting your estate from waste or change of ownership, say, through a divorce of the beneficiaries. Carefully thinking through such aspects of estate planning will ensure that the family wealth serves the beneficiaries in the way you intended.
Start the conversation with your family
Generational wealth planning needs to start with you having a conversation with your family and letting them know your intentions. While at it, educate and instill values in your children that will work towards the preservation of such family wealth. Remember, they will run the show when you are gone, so reading from the same page is necessary.
Protect your family’s legacy by learning more about estate planning. It will help you make informed decisions on the way forward and help seal any loopholes.