Wealth Planning Strategies For A Sustainable Generational Plan

Many of our clients have the goal of leaving a legacy for their loves ones. To help optimize your wealth plan so that it’s sustainable for future generations, you need to take a comprehensive and strategic approach. Here are some key strategies to consider:

Estate Planning and Asset Preservation

Establishing a robust estate plan is crucial for preserving wealth across generations. This includes:

• Creating a will or living trust to clearly outline how your assets should be distributed
• Setting up trusts, such as revocable living trusts or irrevocable trusts, to preserve assets and potentially reduce estate taxes
• Using family limited partnerships (FLPs) to transfer business ownership while retaining control
• Implementing advance healthcare directives to avoid costly medical procedures that could deplete your estate

Tax Optimization

Minimizing tax liabilities is essential for preserving wealth over time:

• Engage in effective tax planning strategies, such as utilizing tax-efficient investment vehicles
• Maximize deductions and explore tax-saving opportunities
• Regularly review tax strategies with professionals to take advantage of changing laws

Investment and Risk Management

A sustainable wealth plan requires careful investment management:

• Diversify your portfolio across various asset classes to mitigate risks
• Regularly review and rebalance your investments to maintain desired asset allocation
• Consider sustainable and impact investing strategies that align with your values
• Implement risk management strategies, including appropriate insurance coverage

Education and Communication

Preparing future generations is crucial for long-term wealth preservation:

• Promote financial literacy among heirs by teaching responsible money management skills
• Involve family members in financial decisions and discussions
• Lead by example in financial matters and align spending with family values

Philanthropy and Legacy Planning

Incorporating charitable giving can provide multiple benefits:

• Establish charitable foundations or donor-advised funds for tax benefits and supporting causes
• Use philanthropic activities to foster a sense of purpose and values within the family

Professional Guidance and Regular Review

Seek experienced advice and regularly reassess your wealth preservation strategy:

• Create an experienced estate planning team to help guide you including an estate planning attorney, a CPA and a Financial Advisor.
• Conduct regular reviews of your wealth preservation plan to adapt to changing circumstances and goals

By implementing these strategies and maintaining a proactive approach to wealth management, you may increase the chances of your wealth plan being sustainable for future generations. Remember, wealth preservation is an ongoing process that requires dedication, education, and adaptability to ensure your legacy endures. Our iWealth team is just a phone call or email away should you have questions about providing for your family’s future.

LPL Disclosures
Limited partnerships are subject to special risks, such as potential illiquidity, and may not be suitable for all investors.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

Asset allocation does not ensure a profit or protect against a loss.