Family Legacy Planning: How to Preserve Your Wealth for Generations to Come
Ever wonder how some families seem to stay wealthy forever, generation after generation? It’s not just luck, and it’s not because their vast fortunes are inexhaustible. It is the result of purposeful estate planning and ongoing financial management. On the other hand, families that fail to plan may be surprised by how quickly their substantial wealth can be eaten away by taxes, poor investments or extravagant spending.
If you have a sizeable estate to pass down, a thorough and strategic wealth preservation plan can give your heirs the purpose, knowledge, tools and support they need to sustain the family’s resources many years into the future. What might that plan entail? Consider these five steps:
Visualize. Think about everything your considerable wealth makes possible—for you, your children and future generations. How could they leverage the opportunity to remain financially independent while contributing to a greater purpose? Consider crafting a family mission statement that spells out your values and long-term vision.
Strategize. Bringing your vision to life will take thoughtful financial analysis and practical solutions. This will include a combination of a portfolio review, cash flow and spending projections, investment planning and tax avoidance strategies. Additionally, you may need various entities created to establish guardrails for your heirs, ensuring your wishes are carried out after you’re gone.
Communicate. Don’t keep your plans a secret. Rather, help your family understand and embrace your long-term vision and values. Letting them know what to expect when you pass on can facilitate a smooth transition and prevent divisive family squabbles.
Engage. More than just telling them the rules, get your heirs involved in the process of preserving the family legacy while encouraging them to make their own mark on the world. This might start with educating young heirs on the tenets of financial management, and perhaps later assigning them duties within the family office.
Maintain. Wealth preservation isn’t a set-it-and-forget-it endeavor. To remain effective through generations, your plan should be reviewed and updated periodically, requiring input from your trusted advisors such as professional money managers, CPAs and attorneys. Continuous refinement of the plan should be a stipulation that lives on after your departure.
Understandably, the thought of crafting such a far-reaching plan can seem overwhelming. That’s why our Frost Family Legacy Services team is here to ask the right questions and bring together the best resources to help preserve your wealth in perpetuity and ensure your legacy endures for generations to come. Reach out to Evans Attwell at Evans.Attwell@frostbank.com or 713.388.1367 to learn more about our Family Legacy Service offerings.
The more complex your financial affairs, the more essential it becomes to choose an experienced estate planning partner. Contact Evans Attwell at 713.388.1367 or Evans.Attwell@frostbank.com for help securing your legacy and preserving your wealth for future generations.
Investment management services and trust services are offered through Frost Wealth Advisors of Frost Bank. Investment and insurance products are not FDIC insured, are not bank guaranteed, and may lose value. Brokerage services offered through Frost Brokerage Services, Inc., Member FINRA/SIPC, and investment advisory services offered through Frost Investment Services, LLC, a registered investment adviser. Both companies are subsidiaries of Frost Bank. Additionally, insurance products are offered through Frost Insurance. Deposit and loan products are offered through Frost Bank, Member FDIC.
Frost does not provide legal or tax advice. Please seek legal or tax advice from legal and/or tax professionals.