Multigenerational Wealth: An Estate Checklist

Generational wealth is commonly referred to as the assets and money passed down from one generation to another. These assets might include bonds, stocks, properties, jewelry, family businesses, and other investments. With our aging population, and what is known as “the silver tsunami,” the topic of generational wealth is becoming more and more important. However, studies estimate that 70 percent of family wealth is lost by the end of the second generation and 90 percent by the end of the third generation. To help your family and loved ones avoid becoming part of this statistic, education and estate planning are key. When thinking about your own wealth, educate your family about your wealth transfer goals and make sure you have the plan in place to achieve these goals after you’re gone with estate planning and asset protection.


Educate Your Family on Your Wealth Transfer GoalsĀ 

Although the conversations around what happens after you die may be tough, they are necessary if your family is going to know what to do with your estate. Consider communicating the following information to your family to ensure that they fully understand and will be prepared to carry out your wishes during a difficult time:

  • A net worth statement or, at a minimum, a broad overview of your wealth
  • Your final wishes for burial or cremation and memorial services
  • Estate planning documents you created and the purpose each document serves:
    • Durable financial power of attorney
    • Medical power of attorney
    • Advance directive or living will
    • Health Insurance Portability and Accountability Act (HIPAA) authorization form
    • Revocable living trust
    • Pour-over will or last will and testament
    • Irrevocable life insurance trust

There are other advanced estate planning tools to consider if you are concerned about protecting your money and property from creditors, predators, outside influences, future family, and lawsuits. Further, it’s essential to choose someone who you trust to make decisions if you die, or are incapacitated, or otherwise unable to make decisions while living. The benefits of properly drafted lifetime discretionary trusts include:

  • Educational opportunities for future generations
  • Asset, divorce, and remarriage protection
  • Protect special needs beneficiaries
  • Minimize estate taxes at each generation
  • Create a lasting legacy for future generations

To prepare your family for the inevitable, make sure they know the location of important documents: this should include how to access your digital assets such as social media, online bank accounts, and crypto-assets. Also ensure they know what to do and who to contact, including your key advisors such as your estate planning attorney, financial advisor, certified public accountant, insurance agent, spiritual advisor, etc.


An Estate Planning Attorney to Help You Manage Your Wealth Transfer Goals

At Michaelson & Associates, we can assist you with determining your wealth transfer goals, creating a plan to achieve these goals, and effectively communicating this information to your loved ones. We are ready to help you protect your estate and prepare your family to receive your accounts and property without them risking losing it all. Call us at 702-731-2333 or visit our estate planning website for a consultation to discuss your estate planning, asset protection, and wealth transfer management goals.

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