The Role of Personal Values in Generational Wealth Planning

What comes to mind when you think of generational wealth? For some, “generational wealth” includes images of large investment accounts, real estate holdings, or family businesses being handed down from generation to generation. Others may associate the term with inheritances and assets that benefit future generations.

However, generational wealth is bigger than the numbers on a bank statement. It’s about the stories, values, and intentions that guide the use of family resources. Wealth without the proper context can be spent down rather quickly. Wealth is tied to a particular purpose, and shared values can influence family decisions generation after generation.

At iWealth, our Minnesota-based financial planners often remind our clients that generational wealth isn’t just what you leave behind; it’s what you teach and model for family members while you’re still here. That’s why our planning process begins with a deep understanding of what matters most to you and your family.

Why Values Matter in Wealth Planning

When it comes to generational wealth, numbers are only part of the story. Values give the numbers meaning and a purpose. Values are like the foundation of a house. You don’t always see them, but they hold everything together. Without that foundation, even the most detailed financial plan can collapse.

At iWealth, we help families answer bigger questions, such as:

• What’s the purpose of our wealth?
• What do we want our wealth to represent?
• How do we want our wealth to shape the future?
• How do we influence the use of our wealth after we are gone?

Passing down wealth isn’t just about transferring particular assets; it’s about what those resources represent in the lives of future generations. Families often use tools like education accounts, donor-advised funds, or even letters of instruction to explain the “why” behind their decisions.

These steps transform financial planning into something more specific and personal: a way to encourage responsibility, generosity, cooperation, and lasting family connections. Beneficiaries may inherit accounts and property, but without the habits, perspective, and intentions behind them, wealth can easily become disconnected from its original purpose.

At iWealth, this is where our process begins. When you sit down with our Minnesota financial advisors, we take the time to uncover what truly matters to you. From there, we create your generational financial plan around those values, working with your family members, CPAs, and estate attorneys to create strategies that reflect your goals, beliefs, and principles that you want passed down to future generations.

That’s the difference between leaving assets and leaving a legacy. Wealth should be more than stocks, bonds, real estate, and businesses; it’s about sharing experiences, values, traditions, and the long-term impact of the assets on the family.

What We Do First: Understanding What Matters to You

At iWealth, we start our relationships with new clients by listening. What are your beliefs, hopes, and concerns? What do you want to see happen after you are no longer here?

This is not a generic questionnaire. It’s a personal conversation about dreams, family culture, the unexpected, and what you hope your assets will support: education, philanthropy, business, experiences, or security.

This base of understanding drives everything we do. For example:

• If family and education are high on your values list, your financial plan might include scholarships, trusts with educational incentives, or family education on financial prudence.
• If giving back to organizations you believe in is central to your estate plan, we can help you explore how charitable trusts, donor-advised funds, or legacy gift strategies can be included.
• If faith or community involvement are part of your identity, those may drive estate plans or investment philosophies.

Watch our founder, Brad Connors, discuss the “iWealth Path: An Eight Step Process to Purposeful Planning.”

A Strategy That Reflects What Is Important To You

At iWealth, we create a tailored wealth plan after understanding your values, beliefs, goals, and risk tolerance. As experienced Waseca financial advisors, we help clients define and preserve what they care about the most.

That includes collaborating with your team, such as CPAs, attorneys, and senior family members, to draft a financial picture that aligns with your values.

This typically includes:

• Tax & estate planning tools that reflect not just tax efficiency but fairness and intention.
• Investment strategy choices should also strive to match return expectations and tolerance for expected and unexpected financial risks. Many of our clients also desire that their investments match their beliefs and values.
• Retirement planning in Minnesota and nationwide allows you to live your latter years with confidence and financial independence while reflecting your values, supporting family, helping your community, supporting charitable causes, and other financial priorities.

Preserving More Than Dollars

Carefully crafted legal documents don’t protect generational wealth. It’s preserved best by what is taught, communicated, and modeled for generation after generation. Here are some ways particular values get passed on:

● Share your reasoning, story, and why you chose specific paths with your loved ones. If someone inherits wealth without knowing what went into its creation or the values that shaped it, they may not steward it wisely.

● Write a book documenting your family’s history, values, and purpose.

● Structure in estate documents: For example, age-based distributions, conditions for use (education, charitable, entrepreneurial), and legacy values.

● Ethical wills or letters of instruction. While these are not legal documents per se, they can be compelling ways to tell your heirs what you hope the wealth will do, what you believe, and how you lived. These help anchor expectations and give context.

● The next generation needs financial education, exposure to family advisors, and an understanding of tax, investment, and legal frameworks, not just for wealth’s sake but because wealth preservation is the responsible thing to do for the preservation of the family.

Watch Brad discuss the importance of figuring out your financial puzzle to guide you in leaving the legacy you desire.

Risks When Values Are Overlooked

Several risks can quietly erode your family’s financial legacy without precisely aligning with your values. One of the most frequent risks is potential conflicts between family members with vastly different financial agendas. Heirs may disagree about what to do with inherited assets. Without a shared understanding of purpose, one person’s idea of prudence may look to another like timidity or even wastefulness.

Another type of risk is misuse. Wealth can easily be directed in ways that contradict what its source intended, particularly if there was little communication about the “what and why” behind the plan. When that connection is missing, assets may be spent in ways that dilute or undermine the potential of the legacy.

There’s also the risk of losing a sense of purpose. Inheriting wealth without context can feel more like a burden than a blessing. Instead of leading with intention, heirs may feel left to manage money without clear guidance.

Finally, disintegration is a very real possibility. Family relationships can fray when vastly different financial decisions are made without empathy, transparency, or preparation. What could have been a unifying legacy risks becoming a source of serious division.

Putting It Into Practice: Generational Wealth Planning in Minnesota and Beyond With iWealth

With offices in Waseca, Mankato, and Bloomington, iWealth provides holistic financial and generational wealth planning centered on what you value most. Our approach goes beyond financial products and asset allocation; it’s about helping you define what truly matters, and then we help build a plan around it, whether that includes investments, estate strategies, tax planning, or education goals.

Values alone don’t guarantee that wealth will last forever, but they can strengthen the odds, reduce potential conflicts, and help support lives with a real purpose. Ultimately, what matters most in generational planning isn’t just what you leave behind; it’s how you positively impact future generations.

If you’re ready to start that introductory conversation, our financial planners in Minnesota are here to talk with you about your values and how they can guide your multi-generational wealth plan. Schedule a call with our team today.