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How the right estate plan leads to generational wealth

On Behalf of | Feb 19, 2023 | Uncategorized |

You might know someone in Texas who started a business or charity with money that was passed down through generations in his or her family. In fact, you may have done something similar at some point in your life. Now, you’re thinking about the estate planning process and how you can preserve or grow wealth for the generations that are yet to come in your family  

There are several issues to consider when your goal is to create an estate plan that grows generational wealth. It is best to discuss your goals and your finances with someone who knows how to navigate estate planning and probate systems. It’s also important, once you have a solid estate plan in place, to review your portfolio periodically or when a major life change occurs. This helps to ensure that your estate plan is always updated. 

Taxes are a priority issue regarding an estate plan and generational wealth 

You won’t be too successful in passing down wealth to future generations in your family if wealth is lost due to high tax debts. Rather than thinking solely about the value of your estate and how much money you have, it’s a good idea to consider ways to protect those assets, so that you can keep as much of your hard-earned money as possible and place it in trust or leave it as an inheritance in your last will and testament.  

Diversification of assets helps grow wealth in the future 

If you invest all your dollars into one pot, so to speak, you might wind up losing a substantial portion (or all) of it if that specific market goes under. When your goal is to increase generational wealth, it is best to diversify your assets. You may have heard this said in another way, which is, ”Don’t put all your eggs into one basket.” 

It is understandable to want future generations to be well off in life 

Most Texas parents can relate to wanting their children and their children’s children to be well-off financially, perhaps, even better off than they themselves have been. This desire is the basic premise of wanting to execute a solid estate plan to increase generational wealth. Numerous documents are useful to help accomplish your goals, including but not limited to a last will and testament, a living trust or a business succession plan.  

Your estate plan might start out as a simple and basic portfolio but become more complex as time passes, due to changes in your financial status or life issues, such as marriage, births, deaths, divorce, and more. Keeping your estate plan updated is one of the most important factors to ensure that your goals are achieved when the time comes to administer your estate.