Estate Planning for Generational Wealth

  • Estate Planning
Estate Planning for Generational Wealth | Attorney Mario Godoy | Lombard Estate and Probate Legal Group

Estate planning for multi-generational wealth is not only for the wealthy. Generational wealth can be used to provide a home, education or medical care to the 2nd or 3rd generation of a family. To achieve wealth that can be passed down, you need to create a plan on how to achieve wealth, and then a plan for how to manage your wealth in order to protect your family.

What Is Generational Wealth?

If you work hard to build a successful business, create a strong investment portfolio and accumulate valuable assets, you want to make sure your hard work is appreciated and protected. Generational wealth — also called family wealth or multi-generational wealth or legacy wealth — is wealth that is passed down from one generation to another

Estate Planning Is the Key to Generational Wealth

Financial planner Amy Castoro found that 70% of the time high-net-worth families and business owners’ wealth did not successfully transfer to the wealth-creator’s grandchildren. A strategic estate plan is the key to achieving generational wealth. Lombard estate planning attorney Mario Godoy has advice for people who want to create a legacy plan that protects their assets for future generations.

1. Communicate
Make sure your family understands the need to protect your wealth for future generations, and how you plan to establish trusts and investments to protect your wealth.

2. Involve Your Family 
Anyone who watches the HBO show Succession can see what happens when the head of the family is an autocrat who doesn’t consult or inform his heirs about his plans: while he retains control, he also sets up sibling conflict and rivalries that lead to bad financial decisions.

3. Consult a Professional
A standard will may be sufficient for some individuals but if you have accumulated wealth that you want to protect for future generations, you need to consult estate planning professionals. An experienced wills and trust attorney, a financial planner and a tax accountant should be part of your estate planning team to safeguard your wealth for your heirs.

It takes time to create and execute a plan to protect and transfer wealth to the next generation. Your heirs need to be educated on how to manage their inheritance.

Contact the experienced estate planning attorneys at Estate and Probate Legal Group in Dupage County, Illinois, to discuss how to preserve your wealth for the next generation. Call us today at 630-800-0112.