You realize how short an individual’s time on Earth really is, and you want to prepare your loved ones for that time when you won’t be here any longer. Drafting your estate plan now can help ease the burden for them later.
One thing to consider when doing your estate planning is establishing generational wealth. That doesn’t happen overnight. Beginning when they are young, teach your children and grandchildren about money and show them how to develop good money management practices.
As they age and develop, expand your discussions appropriately. Talk about prioritizing wants from needs and the importance of saving.
Trusts one vehicle to protect inheritance
It’s been said that fortunes are made and lost in three generations. The first works hard to generate the wealth, the second squanders it and the third are then destitute. Fortunately, it doesn’t have to play out that way.
You can fund a trust linked to age or accomplishments (with certain emergency provisions and exceptions addressed). Spendthrift trusts can rein in heirs with poor financial management skills or worse impulses.
Transparency teaches financial skills
Not everyone is born with the innate ability to effortlessly manage their money. But this is a skill that can be taught. Those who still feel inadequate in that area can learn how to identify and collaborate with reputable financial and legal professionals who can guide the decisions they make.
By being financially transparent during your own lifestyle, your heirs can learn firsthand how good stewardship of your family’s resources can increase the coffers and continue to fund the lives of generations yet unborn.
