Intergenerational Wealth and Your Estate Plan

When accumulating a valuable portfolio of assets, investments, and money, it is essential to ensure the wealth passes to future generations. An estate plan protects your legacy by leaving that intergenerational wealth to your loved ones. With these plans, children and grandchildren will not have to worry about housing, medical care, or educational needs. Many individuals have carefully invested and saved their money throughout their lives. Now is the time to think about intergenerational wealth and your estate plan. Contact Harrison Law, PLLC to learn more about planning options by calling (480) 320-2310.

Estate Plans Can Benefit All Families

According to the American Bar Association, estate planning facilitates property transfers and addresses other concerns. Many individuals might need help understanding the importance of an estate plan. One common misconception about an estate plan is that it is exclusive to those with a large amount of wealth. That is simply not true. You must protect this wealth whether you own a business, home, or other assets. Estate plans will help:

• Pay for grandchildren’s education
• Transfer property, like a family vacation home
• Protect family members from overspending inheritance money
• Make arrangements for future family members

Take the time to create, plan, and execute an estate plan on your behalf. Planning allows individuals to protect and transfer their assets to the next generation of family members. Many multigenerational estate plans can protect wealth for the next several decades. An estate planning attorney may be able to help you choose an option for your family. Reach out to Harrison Law, PLLC to learn about the available options for your estate.

How To Create an Intergenerational Estate Plan

While many estate plans focus on passing wealth from one generation to the next, an intergenerational plan can do more than that. These plans should help beneficiaries and heirs preserve and manage those assets in the future, ensuring they are passed to the following generation of family members. Some of these steps may be able to help with your estate planning needs.

Make Decisions as a Family

Since the plan will involve multiple family members, always discuss the estate together. You should talk about these goals in a group setting. Always address any concerns and prioritize objectives during the meeting. Some family members may want to have income available for educational expenses, retirement, or emergencies. If a few family members are younger, it could be beneficial to set up a trust to ensure all the distributed money reaches them at the appropriate time.

All members of the family should discuss their needs. Many estate plans focus on every family member’s own estate goal, such as charitable gifting plans, long-term concerns, and access to capital. Families with businesses should also decide how to transition the company from one generation to another. The same should be said for property and other assets. Your estate plan can help transfer these assets to family members.

Consider All Assets

Many people only focus on some of their assets during the estate planning stages. However, when planning for future generations, it is vital to consider all assets, even those that may seem insignificant. These items can include:

• Collectibles
• Art
• Jewelry
• Primary homes
• Rental properties
• Investment portfolios
• Bank accounts
• Insurance policy benefits

Think About a Trust

Today, there are many options for intergenerational wealth and your estate plan. Once a family has decided how to structure the plan, any planning should ensure the long-term goals of all generations are met. Many families will turn to a trust to help protect the wealth and assets. An estate plan will be the legal framework to ensure the generational wealth is executed according to your wishes. With an estate trust, all those final wishes are documented in a will. While wills are not always legally binding and can be challenged in probate court, having other supporting documents in the estate plan is vital. Estate plans are not just about assets. In a few cases, they can have documents stating the financial values of the estate or documentation of the family history.

According to the Internal Revenue Service, a “trust is formed under state law.” Many families will establish a trust as the primary protector of their wealth. These legal options will protect all hard-earned assets in the future. Trusts are designed to provide tax advantages and financial protection. These trusts will also contain many different types of assets, such as real estate, investments, cash, and businesses. During the process of establishing a trust, you must name a trustee. This individual will ensure all the assets are distributed according to the documentation in the estate. Also, a trustee is responsible for following any other instructions, including making special arrangements for distributing funds or selling property.

Plan for Other Circumstances

Life does have a few unexpected changes. There may be times when special planning is needed for a life change or other particular circumstances, such as debt, disability, financial instability, and divorce.

Always regularly follow up on any estate plan. By taking other family members’ needs into consideration, make sure your estate plan can move forward in the future. Consider involving family members in regular meetings with financial professionals so that you can address changing situations, redefine family members’ needs, and talk about any concerns that could affect the estate.

Protect Your Legacy

Planning your estate helps alleviate a few of the issues of passing down generational wealth. It is crucial to choose an option that can protect your assets and preserve wealth for those future generations. You will ensure the financial support of your family members throughout the years. There are many options available to you. Select one that will address the specific needs of your family.

Talk To an Estate Planning Lawyer Today

Take time to think about intergenerational wealth and your estate plan. Building and protecting this generational wealth is a continuous process that requires careful planning. When you understand the importance of this process, you may be able to secure the financial health of many generations in your family. If you want to discuss your estate planning, schedule a consultation with Harrison Law, PLLC by calling (480) 320-2310.

© 2023 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved

This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.