Satya
After working hard to accumulate wealth for yourself and your family members, the next way forward is securing the wealth so it can remain within the family for generations. Unfortunately, many people ignore their estate planning and the financial empire they worked their whole lives to build, crumbling to nothing shortly after their deaths. How can you avoid this and maximize all the money you make even in death? Here are a few ways you can do it.
Official Estate Planning
The larger your estate, the more difficult it would be for you to handle your finances on your own. Things will be even more difficult for your family members in the event of your death. Thankfully, there are certain measures you can put in place for proper estate planning. For starters, open a trust for all your loved ones and create a separate trust for the bulk of your properties with clear instructions on how it should be managed in the event of your death. An experienced NYC probate lawyer will help you develop a proper plan that takes everything into account, from guardianship provisions to designation.
Financial Literacy and Stewardship
As the world evolves, so does financial education. Every day, new and improved ways of making money, saving, and investing are popping up. Ensuring you and other members of your family enroll in financial literacy programs is one way to protect your wealth. Also, you can opt for professional financial stewardship for your family if your children are still young. The expert will help them save, invest, and budget your wealth wisely when you are no more. If your children and other family members are old enough, get them involved in the family business and teach them the ropes of how things work while you are still alive. Family governance works well when everyone is on the same page and there is family unity.
Explore Trusts
The second paragraph of this piece mentioned trusts as one of the best ways to secure your wealth across generations. Now, let’s take a deeper dive into the different types of trusts you can try. First, you can try a revocable trust. This type of trust allows you to name a guarantor who has the right to amend or revoke the trust as needed. An irrevocable trust also has a guarantor, but they don’t have the power to change the terms of the trust even when you die. These are the two most common options for traditional cases. You can also opt for a charitable trust if you are leaving your wealth for charity or a special needs trust if you have children living with disabilities.
Asset Protection Strategies
Unforeseen events like lawsuits, divorce, and creditor claims can suddenly affect your family’s wealth. Implementing asset protection strategies is one way to shield your family’s wealth from these unforeseen events. Some popular methods of asset protection are asset segregation, umbrella insurance policies, limited liability entities, and offshore trusts.
Conclusion
Generational wealth isn’t something every family is going to get. Only the elite few will ever get this privilege. If you have a chance to build wealth for your family, don’t take any chances.
