By: Ralph Urena, LL.M, CPWA®, AAMS®

Hey, awesome readers! I often meet clients who want to ensure their wealth is responsibly transferred to future generations. I've seen firsthand the challenges families face when dealing with inheritance, and I'm passionate about helping my clients navigate this journey. It's a valid concern, given that 70% of family money disappears by the second generation, and 90% by the third. However, with thoughtful planning and open communication, you can help secure your family's financial future for generations to come.

Here are some tips to help you create a lasting inheritance:

Embrace Trusts

Trusts have been a game-changer for many of our clients. They offer a structured way to manage and distribute assets after you pass away. You can set age provisions, allowing your beneficiaries to access their inheritance once they reach a specific age, such as 25 or 30. I've seen generation-skipping trusts work well for clients who want to potentially transfer money tax-free to their grandchildren or great-grandchildren.

Engage Your Family in Philanthropy

In my experience, involving your family in charitable giving not only helps instill values but also strengthens connections between generations. I've helped clients set up donor advised funds, private foundations, and charitable remainder trusts (CRTs) to engage in philanthropy while also managing the size of the inheritance left to their heirs.

Share Your Vision with Your Heirs

One of the most impactful things I've witnessed in my career is the power of open communication. Discussing your family's history, values, and vision for the future can significantly contribute to preserving your wealth. I often recommend that clients share their story and purpose through an ethical will or legacy letter to create a common understanding that helps maintain their family's financial stability.

Consult a Professional

I believe in the importance of involving an experienced professional in the inheritance planning process. A Certified Private Wealth Advisor® professional like myself can offer invaluable insight and education to you and your heirs regarding wealth management and inheritance planning, which can be crucial for creating a lasting legacy.

In conclusion, with proper planning, communication, and professional guidance, you can help ensure your inheritance lasts generations. These steps should help you feel confident that your family's financial future is secure and your legacy will be protected.

Remember, I'm here to help. Please feel free to reach out with any questions or concerns about your financial planning needs. My priority is to help guide you and your family towards a secure and prosperous future.

Stay wealthy, my friends!