Let's Talk about Generational Wealth Transfer

Let's Talk about Generational Wealth Transfer

April 10, 2024

Have you ever wondered how much money you need to have in the bank before you talk about "generational wealth transfer?" The answer is, less than you think. There is no minimum threshold to discuss protecting and gifting the nest egg you have worked hard to build. There is no 'better time' than today to start thinking about how to use your assets to help those you love, both now and after you pass. A financial plan is great place to start and at Atlas Wealth Strategies, we can help! 

The first step in generational wealth transfer is to tell your story. That's right - the first step it to talk!  Tell your children and grandchildren the family story of how it came to be that you have assets to share.  Perhaps it started with grandparents going to college after WWII on the GI bill, or maybe you did it all yourself through hard work and determination. Tell your family the story and let them feel a part of continuing that story. Give them a role or responsibility related to the stewardship of the funds. They will be more likely to carry on the legacy if they understand it and feel that the story belongs to them as well. 

Next, you can use your assets to help share your values. Perhaps spending time together as a family is something you love to do now and want your children to continue long after you have passed. A trust, for example, established with a mandate that the money be used for family vacations could be in order. Perhaps home ownership is important to you and you want to help your grandchildren buy their first homes. You can potentially set up accounts to fund what is important to you. A good estate planning attorney can help. 

Finally, you should decide how you want to share the funds and when. You can give annual gifts, set up trusts, fund an IRA (assuming the IRA owner has earned income), or put a down payment on a home. There is no wrong answer to how you choose to share your wealth, but there are important considerations when making gifts, whether you make those gifts while you are living or after you have passed. You need to think about the intention of the funds you want to give and how to protect that money from frivolity, divorce, probate and estate tax. We can refer you to a trusted estate attorney to help with these issues. 

We have some great resource on our website (Generational Wealth and 10 Conversations All Families Can Have) that can helps families navigate discussions and pathways toward sharing your wealth with those you love.  

Call us today and let us help you navigate this process!