If you’ve taken the time to build wealth that you plan to pass to your children, you want to ensure that your family has the guidance and education to keep that wealth in their lifetime and pass it on to the next generation. Ensuring you have a proper estate planned and have taught your children financial literacy, keeping generational wealth is possible.
One of the most important things you can do to help your family is to have an estate plan. Creating a will is crucial if you have specific plans for your wealth. If you don’t have a will, the courts can decide what happens with your wealth and be split up in a way that you didn’t plan. To avoid this and any unnecessary stress on your family, you want to make a plan and write it out for your family to follow.
If you plan to pass a large amount of an inheritance to your children, make sure that you teach them about finances early in their life. Many parents pass on an inheritance, and their children are never taught financial literacy. In these cases, the money that they inherited is spent and not used wisely. When you pass on wealth, you must teach your children how to be responsible spenders and invest their savings.