Residents of Detroit and other parts of Michigan might learn about creating wealth that lasts through generations. The Chinese have a saying, which translates as, “rags to rags in three generations.” This means that by the third generation, the wealth is gone and spent.
On the other hand, people turn to an estate planner for help and the assurance of leaving a legacy for their family. They have accumulated the wealth their whole lives; now they want to have other generations share in it. Poor estate planning, according to some experts, does not consider the needs for a generational plan.
The right direction begins with a plan
You will need the following before you begin talks with your advisers:
- The right mindset
- Openness with your family
- Written intentions
By writing down your intentions, you are setting specific provisions for the spending of money, placing restrictions on its accessibility and replenishment.
Opportunity to bring family together
Having a discussion with family members about your intentions is important. Your goal should be to offer guidance and leadership with what to do with your money after you pass away. Meaningful discussions with family regarding values, what the family stands for and wealth strategies may put you and your family at ease.
Assets can keep growing
A whole life insurance policy may be a wise choice when it comes to estate planning. It gives access to cash while providing for the next generation. Cash value accumulates and is tax-free. However, upon withdrawal, income and growth on cash value is taxable.
Legal work should be in place
Life insurance and legal work should be in order. A competent professional can help you, and their understanding of generational wealth will be an asset. Planning to meet your needs will be their forte.
If you need help with estate planning, it is wise to see the assistance of a trusted and knowledgeable attorney with strong experience in this type of law. Knowing your wealth will be securely passed on to the next generations can provide you with assurance that your future vision will be upheld.