As a business owner, securing wealth for your family’s future is a top priority. Setting up your estate and legacy protects your assets and distributes them to beneficiaries on your terms. However, business owners must take extra steps to ensure their wealth lasts for more than one generation.
Your Estate and Legacy
Your estate plan protects your wealth and possessions and ensures their correct distribution to establish your legacy. Estate planning involves honoring your Will, Power of Attorney, and the distribution of assets.
Your legacy plan manages your estate on your terms. While the estate plan focuses on specific financial management, your legacy is your reasoning and direction for its distribution.
Generational Planning
For your wealth to last, it is necessary to provide specific guidelines and stipulations for beneficiaries to continue adding to the estate: this can be by authorizing wealth to create education funds, handing down your business to the next generation with funding for growth, investing in life insurance policies to create more wealth for future generations, and more.
How You Distribute Your Wealth
Your legacy plan describes how, when, and why you wish to distribute your finances and assets to your family and philanthropic causes. In your estate plan, you assign assets and financial contributions to charitable organizations – your legacy plan will describe how, when, and why you want those donations given to the charities of your choice.
To provide for future generations, In your estate plan, you may transfer ownership of your business to a family member to continue your business so they can continue creating generational wealth. In your legacy plan, you will state the circumstances under which they will own it (upon your absence or inability to) and why you have chosen them. You will make stipulations for the transfer of ownership: you may establish how the successor must undergo business leadership training and development before becoming the new business owner to confirm the successor is prepared to carry on your family business.
Secure Lasting Wealth for the Next Generations
Like the security offered by having an estate plan to protect your finances and assets for the people you love or philanthropic causes you care about, generational planning will honor your wishes and stipulations for the continued building of assets.
It’s critical to record specific instructions and set up policies for each generation to build on your assets and provide for the generations after them for lasting wealth. Without providing clear stipulations, there is a risk your beneficiaries may not know what to do with their inheritance or how to sustain it.
We will review your estate and legacy plan and incorporate strategies to create a lasting legacy surviving several generations. Book a consultation with me today to get started.
