We’re currently approaching the largest intergenerational transfer of wealth in history. Considering this, it’s easy to see why preparing to pass on your legacy is such a significant process. How can you work to secure a better future for the next generation of your family?
The Strength of Your Plan
There’s a lot to keep in mind if you want to efficiently carry your legacy into the next generation, but the best place to start is the structure of your estate plan itself. All necessary documentation for your estate must be up-to-date and written well enough to be as legally and strategically effective as possible. Your will, letter of intent, beneficiary and guardianship designations, and the paperwork behind your trusts are all central to the success of wealth transfer to your descendants. Also remember that trusts in particular are highly practical and versatile for leaving assets to children and grandchildren in a financially viable and carefully controlled manner.
Your Children & Their Inheritance
In addition to optimizing the legal and financial mechanics of your estate, you’ll need to prepare your descendants for the legacy they will receive. Younger children will need to be taught fundamental skills for responsible financial planning and money management. Adult children will need to fully understand the responsibilities that come with family inheritance and what expectations they should or shouldn’t have. Teach them the importance of financial advisors, tax planning, charitable giving, and more. It may even be prudent to begin giving to your children during your lifetime, depending on their age, the assets in question, and many other factors.
What About the Business?
A family business can introduce a number of additional considerations for successful transition of wealth. Who of your children or grandchildren is most fit to carry on the company, and are they intent on taking up that role? Are they prepared, educated, and motivated enough to maintain and improve the company’s profitability and operational integrity? If they’ve not yet reached an appropriate age for discussion regarding the succession of the business, it will be necessary to encourage and engage them on a more formative level. The better you plan ahead in preparing your descendants, the stronger your legacy will be for generations to come.
If you want to prepare your estate for the next generation of your family, there’s no better way than with the help of an experienced and respected family office. Our estate planning experts have everything you and your family need for the task, so get in touch to meet with us today.