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Creating Wealth Across Generations with Estate Planning

Estate planning is something everyone needs to do, regardless of the total value of their estate. Having a clear plan in place is the only way to ensure that property, personal possessions and investments are inherited by the people you love. If your goal is to help your family build wealth, this is especially important, according to an article from Forbes, “Building Generational Wealth: How to Ensure Your Assets Last.”

Without a last will and testament, the state decides who should receive property based on the intestacy laws, which are not likely to reflect your wishes. When Prince died without a will, it took many years to untangle his estate, not to mention the millions paid in federal and state taxes.

For parents, the most important decision in crafting a will is deciding who will be their children’s guardian and naming someone to take care of their finances in case of incapacity.

The myth that trusts are only for ultra-wealthy individuals is starting to fade, as more people understand how trusts work. Trusts provide a way to control distribution over time, building a legacy and protecting assets from creditors as well as spendthrifts. With a trust, you can create long-term strategies to distribute assets over multiple generations.

Family conflict is recognized as one of the most significant challenges to creating a successful estate plan. Open and honest conversations about the parents’ vision for their inheritance and understanding the reasons behind their decisions can help avoid conflict after they pass away. For some families, this is an ongoing discussion, while for others, it may be helpful to have the entire family meet with an estate planning attorney in an office setting.

Wealthy parents often worry about children squandering their inheritance. Using trusts can set restrictions on how inheritances are spent and control their distribution. Another reason to consider trusts for an estate plan: money kept in a trust cannot be attached in case of a divorce or debt. Assets can be directed to be spent only on health, education and maintenance.

Estate planning isn’t just about death. It’s also about protecting you while you’re living. An estate planning attorney will help create Power of Attorney documents so you can decide who you want to take over your finances if you become incapacitated. Healthcare documents allow you to name a person to be involved with your medical care, making decisions and talking with doctors. Without healthcare documents like a Healthcare Proxy, HIPAA Release Form and Living Will, your family won’t be able to talk with doctors, make crucial medical decisions, or know what you would have wanted if you weren’t able to speak to convey your wishes.

A consultation with an experienced estate planning attorney is the first step in creating a plan to establish a legacy. It takes some time, so start by making an appointment. Your future self and your family will be grateful.

Reference: Forbes (June 3, 2025) “Building Generational Wealth: How To Ensure Your Assets Last”

How Does Asset Protection Planning Work?

Life can be unpredictable. A sudden illness, accident, lawsuit, or long-term care need can threaten everything you’ve worked hard to build. Asset protection planning is the process of legally structuring your finances to minimize that risk and preserve what matters most.

Contrary to popular belief, asset protection isn’t about hiding money or avoiding obligations. It’s about using legal tools—like trusts, business entities and careful titling—to separate personal and at-risk assets and ensure that your estate plan holds up under pressure. Whether you’re concerned about future healthcare costs or protecting your children’s inheritance, a well-designed plan provides stability in uncertain times.

Why Asset Protection Planning Matters

Anyone can be vulnerable to unexpected financial loss. A serious illness could trigger overwhelming medical bills. A car accident might lead to liability beyond your insurance limits. Owning a small business or rental property can expose your personal assets to lawsuits.

Even family conflict, such as divorce or disputes among heirs, can jeopardize your financial legacy if your estate plan lacks safeguards. Asset protection strategies help shield property, retirement savings and personal investments from these potential threats.

For retirees, it also plays a vital role in long-term care and Medicaid planning. Without proper planning, you may be forced to spend down most of your savings before qualifying for care benefits.

Common Asset Protection Tools

Asset protection begins with identifying what you own, how it’s titled, and where the risk lies. From there, various legal tools can be used to insulate assets.

One of the most common is the irrevocable trust. Unlike a revocable trust, which allows you to retain control, an irrevocable trust transfers ownership of assets to a trustee. Done properly and early enough, this removes the assets from your taxable or Medicaid-countable estate. These trusts are frequently used to:

  • Protect a home or savings from long-term care costs
  • Provide for children without exposing their inheritance to creditors
  • Isolate assets from divorce proceedings or lawsuits

Another tool is the use of limited liability companies (LLCs) for rental properties or business interests. This separates your personal wealth from business-related risks. In some cases, transferring property to a spouse or adult child can also serve as a protection strategy. However, these steps must be carefully timed to avoid unintended consequences.

When to Start Asset Protection Planning

The most effective asset protection happens before there’s a problem. If you wait until a lawsuit is filed or a health crisis strikes, your options may be limited. Courts can reverse transfers that appear to be made with the intent to avoid creditors, so timing and intent matter.

Planning should ideally begin before retirement or when a need for long-term care is anticipated. Waiting too long may trigger “look-back” penalties that impact Medicaid eligibility.

Working with an estate planning attorney ensures that your actions are legal, strategic and tailored to your specific circumstances. Every state has different laws around creditor protection, trust formation and Medicaid planning, so guidance from a local professional is essential.

Asset Protection and Your Estate Plan

An effective asset protection plan should be integrated into your overall estate plan. That means aligning wills, powers of attorney, trusts and beneficiary designations. If these documents are outdated or inconsistent, your efforts may fall short.

Clear planning not only protects assets but also avoids confusion among heirs, minimizes the risk of probate disputes and ensures that your legacy passes as intended.

Key Takeaways

  • Asset protection planning prevents loss: Legal strategies shield savings, property and retirement funds from lawsuits, creditors and long-term care costs.
  • Trusts are powerful tools: Irrevocable trusts remove assets from your ownership, reducing exposure while maintaining control over distribution.
  • Timing is critical: Planning before a crisis avoids penalties and ensures full protection.
  • Business owners and retirees face unique risks: LLCs and Medicaid planning tools help manage liability and care expenses.
  • A coordinated estate plan is essential: All documents must align to protect your wealth and preserve your intentions fully.

References: Justia (October 2024) “Asset Protection Under the Law” and NerdWallet (Oct 18, 2023) “Asset Protection: How It Works and Strategies”

What Estate Planning Documents are Needed for a Smooth Transition?

No matter the size of the wealth you hope to pass on to the next generation, planning for wealth transfer should be done as soon as possible. It’s good to start talking and educating children about money, as early as their teenage years, says a recent article from yahoo! finance, “Multi-Generational Wealth Transfer: The Financial Records You Need for a Smooth Transition.” Conversations about financial responsibility, the children’s goals and family values can profoundly impact the family dynamic and the children’s fiscal knowledge.

You’ll also want to be sure you have all the estate planning and financial records needed for a smooth wealth transfer and access to the necessary data. Here’s what this includes:

Last Will and Testament. This document outlines how you want probate assets to be distributed after your passing. You’ll need to have an inventory of all assets and a clear picture of your finances. It’s good to review your finances and estate plan on a regular basis.

Trust Documents. While the will is a set of instructions, a trust is a legal entity used to hold assets. Those assets in trusts aren’t subject to probate, offer privacy and allow for the assets to be used in case of incapacity during your lifetime.

Healthcare Directives and Power-of-Attorney. Estate planning isn’t just about asset distribution. Everyone should have a healthcare directive and a power of attorney. If you are seriously injured in an accident, healthcare directives will be needed to allow others to be involved in your care. A power of attorney empowers a person of your choosing to make decisions on your behalf. If you don’t have these documents, your family will have to go to court and petition to obtain conservatorship or guardianship to be involved with your care and finances.

Retirement Account Statements and Tax Returns. Access to these documents will help your executor or agent figure out your financial status. Tax returns contain a wealth of information, including income, account information and potential tax liabilities.

Real Estate Deeds, Mortgages, and Titles to Cars, Boats, etc. Titles documenting ownership, deeds, vehicle registrations and mortgage and loan information will all be needed to settle your estate.

Digital Assets. Educate yourself about the importance of sharing access to digital assets, so you can prepare properly if you are incapacitated or when you die. While some platforms can assign a legacy contact, others may only be accessible by sharing the username and password information. If the asset uses third-party authentication, your executor will also need your phone or access to email to manage your accounts. Passwords and PINS should be stored with both a hard copy and online with a secure password manager.

An estate planning attorney in your community will know how to best prepare for transferring wealth, from preparing the necessary documents to exploring different strategies and guiding the process.

Reference: yahoo! finance (March 31, 2025) “Multi-Generational Wealth Transfer: The Financial Records You Need for a Smooth Transition”

How Do I Protect My Child’s Inheritance in a Second Marriage?

A recent article from MSN, “’I’m 15 years older’: My second wife says she will pass my estate onto my sons. What could go wrong?” presents a question from a man with two adult sons from a prior marriage with $1 million in personal net worth. He’s wondering whether to rely solely on his wife’s verbal assurance to pass his estate to the adult sons if he predeceases her.

The sons are successful in their careers and don’t need his money. The man says his wife is one of the most honest people he’s ever met. However, is trust enough?

Estate planning files are filled with broken promises, not because of dishonesty. Circumstances change, and things happen. Having an updated estate plan, including a trust to safeguard assets for children from a prior marriage, is the best way to ensure that their interests are protected.

A large age difference or a large disparity between the spouses’ assets makes it wise to take the extra steps to preserve assets for the next generation. Otherwise, there’s no requirement for the surviving spouse to pass the assets on to the children.

If the surviving spouse remarries, the assets could even end up with children of their surviving spouse.

There are time-tested ways to distribute assets to children from a prior marriage to ensure that the spouse is well cared for and the children are not disinherited. One way to do this is to use a will to divide assets between the surviving spouse and the children.

Another is to leave the home, if it is in your name only, to the surviving spouse as a life estate, so they will be able to live in it for the rest of their life. The house will need to be maintained, and property taxes paid during that time. When the spouse dies, the house can then be left to the children to sell or keep. This can become complicated if the children are in a hurry to sell the home and the surviving spouse has a long life expectancy.

Marital trusts, like a Spousal Lifetime Access Trust or SLAT, are used to leave assets to the surviving spouse, while protecting the children’s inheritance. They can also be used to control how the assets in the trust are used. Funds can be earmarked for college, or if a child requires rehabilitation, the trust can fund it or set a requirement before distributions are made.

Tax benefits using a marital trust are higher than those for a straightforward inheritance, another reason to use a marital trust.

Note, this is not an issue to be resolved with a pre- or post-nuptial agreement. A will goes into effect upon your passing, and a trust becomes active once it is established. A pre- or post-nuptial is a good idea for a second marriage with age and net worth differences. However, this kind of situation requires a will and a trust.

Talk with an experienced estate planning attorney to create an estate plan to protect your spouse and your children. It will take the burden off all of you, since the decisions for asset distribution will be in place, and you can focus on enjoying your life with your new spouse.

Reference: MSN (May 3, 2025) “’I’m 15 years older’: My second wife says she will pass my estate onto my sons. What could go wrong?”

Fashion Designer Takes Uniquely Named Approach to Her Will

Get ready because this is a doozy, or more accurately, a floozy. Minkoff, founder of a global handbag and clothing empire, has a “floozy clause”—a provision in her will stating if she predeceases or divorces her husband, her assets all go into a trust for her children. This is to prevent a second spouse from gaining access to her wealth, reports the article “Fashion Designer Rebecca Minkoff Reveals She Has ‘Floozy Clause’ In Will” from mondaq.

Minkoff says her mother came up with the idea, long before she or her husband had any money. However, Minkoff counted on becoming highly successful. She maintains that she trusts her husband implicitly. She doesn’t trust what someone else might do if she dies. Her goal is to prevent her children from needing to go to court against an unscrupulous person.

While the title of this provision is admittedly unique, it’s very common for individuals to want to have specific directions carried out after their death, from wishes for the administration of their estate or distribution of assets. Some want to restrict who their beneficiaries marry or even dictate the religion of a spouse.

Another somewhat unusual provision is the Special Trustee for Hostile Acts. In one case, it was used by a mother who wanted to bring harmony to her five children’s relationship after she died. She appointed a Special Trustee to limit trust determinations to any child engaging in a hostile act. However, controlling from the grave doesn’t always work. Litigation ensued between the siblings, and the case made its way up to an Appellate Court, which upheld the provision but declined to limit the application despite the request of several of the children. This mother knew her children very well.

A provision attempting to control the religious marriage requirement can be expected to be enforced if it doesn’t impose a total restraint on marriage in general or promote divorce. On the other hand, a provision providing a financial benefit for an illegal act will always be found invalid.

Back to Minkoff’s strategy: it’s got at least one flaw. If funds or assets pass directly to her husband at some point in time and he hasn’t moved on to a “floozy” with someone five years after her death, he can do whatever he wants with those assets. A better solution would be to put the assets in an Irrevocable Trust containing the limitations and restrictions she wants.

Her plan also creates a tax issue. A gift in trust for the surviving spouse passing to the children if the spouse remarries means the trust won’t qualify for the estate tax marital deduction. There is a way around this, however. The trust can be structured so that the surviving spouse receives the net income of the trust during their lifetime.

The plan isn’t a bad one. However, an irrevocable trust might be a better way to achieve the desired end in cases like this.

There is another aspect to consider when planning to control assets after death. Children are happier when their parents are happy. If a second marriage would make a surviving spouse happier, having to live under the constraints of a “floozy clause” could create resentments and tensions within the family.

Talk with your estate planning attorney about creating an estate plan to achieve your goals while you are living and after you have passed. If controlling assets after you have passed is important to you, they’ll be able to come up with a plan. You don’t have to create a new name for it—unless your mother is as clever as Minkoff’s.

Reference: mondaq (April 10, 2025) “Fashion Designer Rebecca Minkoff Reveals She Has ‘Floozy Clause’ In Will”

Will Inflation Have an Impact on Your Estate Plan?

Inflation can add some twists and turns to your estate plan by increasing asset values and living costs. There are strategic moves to make if inflation is a concern, says a recent article, “4 Ways Inflation Can Change Your Estate Planning” from MSN. If you don’t already have an estate plan, now is the time to create one to protect your legacy.

If one of your estate plan goals is to make generous bequests to help loved ones, the amount you had once intended for them might not be enough. Start by checking how much inflation has eroded your bequest and if you can, adjust the amount based on current costs.

Another way to overcome inflation in bequests is to add assets to the estate that grow over time. These may include index funds or real estate property. Talk with your estate planning attorney about what kinds of assets you currently own and which could work best for inheritances.

While inflation pushing up real estate is good news for property owners, it can raise your estate’s total value. If the threshold for federal estate tax exemption changes, which is yet a big unknown, your heirs may end up with a tax burden instead of a windfall.

This can be addressed by moving assets to loved ones while you’re still living, which could keep your estate under certain tax thresholds. Irrevocable trusts, including a Spousal Lifetime Access Trust or a Grantor Trust, can also be used to move appreciating assets out of your estate. This works to lower potential estate taxes. An experienced estate planning attorney can help determine how your estate is best structured to minimize taxes on a federal and state level.

Increasing healthcare costs are taking a big chunk out of everyone’s pockets, as is the cost of long-term care. If your plan is to pay for a loved one’s medical costs or pay for your own long-term care, you want to protect your funds.

Long-term care insurance policies are costly. However, coverage could prevent your heirs from having to pay for those costs for you. Most insurance companies offer LTC plans as part of a hybrid life insurance plan, making coverage possible. If you expect to apply to Medicaid at some point for yourself or a loved one, this is something to plan for well before you need it. Medicaid has a five-year look-back period, and any wealth transfers made within that time will make you ineligible for coverage.

You should also be sure your estate plan is up to date. If you don’t already have healthcare powers of attorney and living wills set up in advance, meet with an experienced estate planning attorney.

Reference: MSN (April 12, 2025) “4 Ways Inflation Can Change Your Estate Planning”

Just the Facts on Estate Planning

While you do need an estate planning attorney to prepare an estate plan properly, you don’t need to go to law school to understand basic facts about estate planning. As reported in a recent article from the Pauls Valley Democrat, “Some real facts about estate planning,” getting the right information on estate planning basics can alleviate unnecessary anxiety and help resolve concerns.

You can use a trust to avoid taxes. Well, not always. Creating a trust alone doesn’t save taxes. It depends upon the type of taxes being discussed—income taxes, federal estate taxes, state estate taxes, or inheritance taxes—and the type of trust being created.

The person who establishes the trust, known as the grantor, pays income tax on a revocable living trust. If the trust is an irrevocable trust, income held in the trust will be taxed at rates near the highest individual tax rate.

Trusts do offer possible estate tax savings, depending upon the type of trust and how it’s structured. However, estate taxes aren’t even a concern for most people, since an individual must own more than $13.9 million of assets at the time of their death before any federal estate tax applies. Whether or not this historically high exemption level remains after December 31, 2025, is still unknown and you should speak with your estate planning attorney to be sure you are prepared if your estate is near the $7 million level just to be sure.

The heir pays estate taxes. Not always. Beneficiaries don’t pay the estate tax. The estate pays federal and state estate taxes. Federal estate taxes apply only to the estates of people with large amounts of wealth, who have likely done the proper estate planning to avoid paying estate taxes in the first place.

If you live in one of the few states with an inheritance tax, then you’ll pay inheritance tax based on the laws of your state.

If inherited assets include a large amount of appreciation, there won’t be any capital gains taxes paid because the recipient receives the assets at their fair market value at the date of death. For example, let’s say your mother dies owning $100,000 of land, which she bought in 1958 for $10,000. If she sold the land, she’d pay capital gains tax on $90,000. However, her heir’s basis is $100,000, and they could sell the land for $100,000 and pay no taxes.

The best way to avoid worrying about estate planning is to schedule a consultation with an experienced estate planning attorney and discuss your unique situation. They’ll be able to create a plan to minimize your taxes, discuss whether a trust would be appropriate for you and your heirs, and give you the peace of mind that comes with knowing you’ve taken care of yourself and the next generation.

Reference: Pauls Valley Democrat (April 11, 2025) “Some real facts about estate planning”

How to Create a Comprehensive Estate Plan in Five Steps

Those who live or work in the heart of high-tech corridors are often future-focused, with innovation at the center of their world. However, planning for the future should include estate planning to ensure that assets are distributed according to your wishes, rather than according to the laws of your state. A recent article from Puget Sound Business Journal, “5 essential steps to craft a comprehensive estate plan,” offers the five key steps that every adult needs to take to create an estate plan.

Create an inventory of assets. Today’s inventory includes tech investments, real estate, cryptocurrency, life insurance, retirement accounts, personal property and the contents of a safe deposit box. This information will help your estate planning attorney know what planning tools will best suit you and your family. A complete inventory will also be required by your executor to settle your estate, regardless of how far off that may seem.

Asset ownership and beneficiaries. Knowing what you own and knowing how you own it are two different things. If you live in a community property state, for instance, each spouse owns half of the property purchased during the marriage. However, if you own property as Joint With Right of Survivorship (JWROS), the property will pass to the surviving spouse without going through the will.

Estate planning includes reviewing beneficiary designations. Life insurance, retirement accounts and investment accounts typically allow you to name beneficiaries who will receive the assets directly upon your death. These designations override any wishes expressed in your will. Be sure they are current and review them periodically to ensure accuracy.

Plan for guardianship of minor children. Your will is used to name a guardian for any minor children. If you don’t have a will and you have young children, the court will decide who will raise the children in the event of both parents dying. If you have young children and no will, you must take care of this as soon as possible.

Power of Attorney for Financial and Healthcare Decisions. Part of estate planning is to protect you while you are living, but not able to speak on your own behalf. An estate plan typically includes a Power of Attorney to name someone to manage your financial affairs and a Healthcare Proxy or Healthcare Power of Attorney to designate a person of your choice to make decisions and participate in your medical care in the event of incapacity. Both documents should be crafted to reflect your personal wishes.

Discuss your estate plan with family and advisors. Death and illness are not as pleasant to discuss as your latest exotic vacation. However, it’s important to let certain family members or trusted friends know about your estate plan. For instance, your executor should be aware of the location of your will and the type of memorial you wish to have. Discussing your wishes can help prevent misunderstandings and even litigation.

Estate planning requires maintenance, just like your home or car. As you go through the different stages of life, your estate plan needs to adapt. Conducting a regular review every three to five years ensures that your estate plan accurately reflects your wishes and provides for the care of your loved ones.

Reference: Puget Sound Business Journal (March 17, 2025) “5 essential steps to craft a comprehensive estate plan”

Can I Include Digital Assets in My Estate Plan?

From a bird’s-eye view, digital assets encompass digitally stored documents, electronic communications, loyalty programs, airline miles, photos, videos, social media accounts, cryptocurrencies, subscriptions, online businesses and accounts provided by service providers (e.g., Facebook, Instagram, GoDaddy).

If this sounds overwhelming, imagine how taking care of this asset category will feel to your executor if you haven’t prepared a full inventory as part of your estate plan. A recent article from The National Law Review, “5 Ways Estate Attorneys Can Bring Order to Their Clients’ Digital Asset Chaos,” outlines the necessary steps to organize your digital affairs.

Clarify your digital asset status. In addition to the items listed in the first paragraph, you may own domain names, digital recordings and content, or conduct business on sites such as Amazon, engage in cryptocurrency, NFT, or gaming token transactions, to name a few. If you spend five minutes on the internet, you also have NIL—name, image and likeness, which is a digital identity.

Your estate planning attorney will ask if you use online bill pay for recurring expenses, how you store photos and videos, how extensively you use social media and if you have created a digital inventory in case someone needs to access this information to manage your estate or pay bills in the event of incapacity.

Make an inventory of digital assets. A thorough inventory of digital assets begins with hardware and ends with apps. This includes any devices where you store or access information, such as desktop and laptop computers, tablets, mobile phones, external hard drives, e-readers, digital cameras, gaming devices, smart home systems and flash drives. Cryptocurrency owners will also have online wallets.

Next, map out where data exists. This likely includes cloud services, such as Google Drive and Dropbox, as well as local hard drives, backup systems and applications.

Online accounts and digital assets encompass a wide range, from email to utilities, cryptocurrencies and NFTs, bank accounts, investment accounts, social media platforms, Venmo, PayPal, subscriptions, transportation apps and any other online activity, accessible on any device.

Creating an inventory might be easier if you scan and print emails for receipts and password reset links to uncover any forgotten accounts. While some people no longer print anything, this might be a good exception to make to help your executor’s tasks easier.

Determine your directives for each account. What makes this process more complicated is the different values ascribed to different digital accounts. A long-unused library application, for instance, doesn’t need to be treated in the same manner as the portal where you store your financial information. However, both require attention. Some accounts may need to be deleted in the interest of privacy, while others, like photos and videos, you may want to share with family members. None of this information should be included in your will, which will become a public document.  It should instead be part of a digital estate plan.

Name a savvy executor who is comfortable in the digital world. Identifying traditional assets can be challenging without an inventory. However, identifying digital assets is even more complex: there is no paper trail. For those with significant assets, it may be wise to empower your executor to retain a technical advisor to help unravel a digital estate.

Make it legally binding. A bare-bones estate plan typically includes a will, a revocable trust and financial and healthcare powers of attorney. An estate plan that includes digital assets should provide clear directions about who will manage these assets. Speak with your estate planning attorney about how to maintain the inventory of assets and manage updating it as assets change at a more rapid pace than traditional assets.

Reference: The National Law Review (March 21, 2025) “5 Ways Estate Attorneys Can Bring Order to Their Clients’ Digital Asset Chaos”

Good Parenting and Estate Planning Work Together

Wealth created by one generation is often lost by the third generation when financial discipline, respect for the process of wealth creation and understanding the responsibilities of wealth aren’t taught from generation to generation. There are ways that parents can help their children and grandchildren overcome this tendency, and estate planning strategies are part of the process, says a recent article from Barron’s, “Teach Your Kids to Preserve Family Wealth, Not Squander It.”

Preparing to transfer wealth is best done with an experienced estate planning attorney. In addition, an annual letter to your children with a summary of the family’s financial situation and a statement of the parent’s values will help educate and update the family.

The annual letter should also share info about where to find wills and trusts and other estate planning documents, contact info for the estate planning attorney, financial advisor and accountant, and the location of life insurance policies. Don’t neglect an inventory of digital assets, their value and how to access them.

Trusts offer an opportunity to express values by creating a trust with incentive provisions and age-related triggers. When a beneficiary reaches certain milestones, like graduating from college or getting married, distributions can be made. There are also means of discouraging problematic behaviors. Provisions may be written to delay distributions until a beneficiary retains a job or enters a rehabilitation program and maintains sobriety for a certain period. Your estate planning attorney will discuss which type of trust is best for your family.

Start by defining your own family’s values and what it looks like to put those values into real-life scenarios. For instance, if you value entrepreneurial spirit, a trust could be created with discretionary distributions and non-binding language encouraging heirs to use the funds to start or expand a business. A trust could also encourage children to buy a home in a community with an excellent school district to benefit their children.

Stating these models without living them defeats the end goal. Children learn values by seeing how their parents behave. These lessons are learned early in life.

For high-net-worth families, avoiding a sense of entitlement is a major challenge. This is where generations lose a work ethic and wealth. Good parenting can avoid this by encouraging children to become resilient and allowing them to fail in safe settings. Developing confidence based on their abilities, whether in academics, sports, or community efforts, will foster a sense of self and independence not based on the family’s wealth.

For regular families intent on building wealth over generations, a healthy respect for the work it takes to build bank accounts, buy a home and create the stability needed for the future takes extra effort. Creating an estate plan with an experienced estate planning attorney can help you plan for the unexpected.

Reference: Barron’s (Feb. 7, 2025) “Teach Your Kids to Preserve Family Wealth, Not Squander It”

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