Bring Your Wealth Transfer Vision to Life

Families that successfully establish generational wealth often share more than just money. They embrace the mindset that values and family relationships are as important a legacy as their assets. Achieving this vision for your family depends on the development of an all-encompassing financial plan tailored to the individual needs, goals, and personalities within your family for lasting impact.

Connecting with a financial professional (FP) can help you create and refine your financial plan and they can help you formulate your strategy with insights to grow and protect your generational wealth.

Working with Your Financial Professional

Your FP can help you avoid some possible pitfalls of a generational wealth transfer through careful planning. A successful approach includes the following actions:

• Consider your legacy: Discuss your vision with your FP. What impact you would like your wealth to have on others? What are the social, economic, and philanthropic values that guide you.
• Establish your team of advisors. In addition to a financial professional, an estate attorney and tax consultant can work together to avoid mistakes such as incomplete estate planning, underestimating tax obligations, or neglecting to consider the implications of your plans on all family members.
• Educate your beneficiaries. Whether it’s a business succession plan, an introduction to your philanthropic commitments, or a meeting with your FP to share fundamental money management information, you can provide the expertise your beneficiaries will need to steward the family’s generational wealth.
• Talk to your beneficiaries. Unfortunately, an inheritance can be a source of strife between siblings and other relatives. A family meeting or private conversations can set expectations and ease strained relationships that may be caused by an inheritance.
• Document your plan. Work with your financial professional to prepare, update, and sign the paperwork needed to execute your plan.

Steps for Making Your Wealth Transfer Goals a Reality

Leaving an inheritance for children, grandchildren or a charity that’s close to your heart is desirable for many people regardless of their wealth. Achieving this goal takes careful financial planning to grow, protect, and share your generational wealth in the context of your values and intentions. The process can be simplified with the assistance of a FP to match your aspirations and activities.

1. To provide financial stability for family members, consider when would be the optimal time to help them.
   1. You may want to think about gifting funds now for a real estate purchase, investments or to start a business.
   2. Alternatively, you could structure the funds for incremental inheritance as they achieve milestones to protect them from a too-large windfall when they may not be mature enough to handle it. Annual gift tax exclusions and lifetime exemptions change, so be sure to work with your own tax and legal advisors and to check IRS codes before you plan a large gift.
2. To support a cause that’s important to you, look into the options for donating during your lifetime through a donor-advised fund or a private foundation. If you want to leave money as an inheritance, consider whether you want to designate a dollar amount, an investment portfolio, real estate, or other assets.
3. To pass on tangible assets such as real estate, ask first if your heirs want the property. There are multiple ways to transfer real estate, but you don’t want to burden heirs with complex real estate transactions and tax or insurance bills they can’t afford, particularly when they are grieving. If one heir wants a property and others don’t, work with your legal advisor to identify an estate equalization strategy that can help ensure a harmonious sharing of generational wealth.
4. To show your love with personal mementos or possessions, aim for fairness in monetary value and express your preferences clearly. Whether your personal possessions are valuable for sentimental or financial reasons, you can help ease family conflict with a written plan and explanation for your decisions.

Ensuring a successful transfer of generational wealth requires careful planning, open communication, and a focus on both the financial and emotional aspects of your legacy. By working with a trusted financial professional to address key considerations such as clear estate planning, involving all beneficiaries in important conversations, and preparing the next generation with the necessary financial literacy, you can pave the way for a seamless transition. Taking the time to consider these steps and incorporate them into your financial planning will not only help you preserve wealth but also strengthen family relationships and foster a legacy that endures for generations to come.

Duly registered and licensed Equitable Advisors Financial Professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.  Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services.  GE-7687259.1(02/25)(exp.02/29)