Don’t Just Pass Down Wealth, Pass Down Traditions: A Guide for Preparing Heirs

transfer of wealth

Building generational wealth is just as important as cultivating a wealth mindset. Otherwise, your family could lose everything.

Setting up good habits and traditions now can work wonders for protecting your legacy for years to come.

Because here’s the thing—it’s not just about the money, the assets, or the family business. It’s about passing down a legacy of traditions, values, and a culture that continues for generations. To ensure your legacy lives on, you must start by preparing those in line to receive your inheritance today.

Let’s look at why prepping for a transfer of wealth is so important, six ways you can get started, and how to get help.

The Great Wealth Transfer is Upon Us — Wealth Preservation is More Important Than Ever

Baby boomers are about to have the greatest wealth transfer of all time—about $30 trillion will be passed down within the next few years.

But while this massive transfer of wealth presents an opportunity for families to secure their financial futures and pass on their values, it also comes with challenges: many heirs aren’t prepared for what’s ahead of them.

In fact, research shows that 70% of wealthy families lose their wealth by the second generation, and 90% will lose it by the third.

So how do you ensure that your children and grandchildren are ready? What steps can you take now so that when the time comes, your family doesn’t go bankrupt?
You plan.

Let’s look at a few ways you can instill a wealth mindset in future generations and prepare them for managing the estate.

6 Family Traditions to Prepare Younger Generations for a Transfer of Wealth

Every family has its own family traditions, and there are many ways to go about it.

Traditions are more than events and activities you do together, but a set of customs and belief systems that pass from generation to generation.

Here are six ways to show the next generation how it’s done.

#1 Build Family Culture

Family culture is the way your family does things. It’s the values, traditions, and beliefs that guide you in your daily life. Family cultures can be toxic. Without trust, strong relationships, and values, you’ll have a hard time getting the next generation to rally around the idea of protecting the estate.

You can build a family culture in a number of ways, like sharing intergenerational stories, talking about your family history, and sharing important holidays. However, you choose to do it, make sure it reflects what’s most important to you.

#2 Talk About Money

Talking about money is uncomfortable for most people. Especially across generations that may have very different feelings about the subject. But it’s an important part of preparing heirs for the future, and if you don’t talk openly about these topics with your heirs now, they won’t feel comfortable coming to you later if they have questions or are struggling to manage their finances.

#3 Teach Financial Literacy

Financial literacy is the ability to make sound financial decisions. It involves knowing how to earn, manage, and spend money—vital skills for those expecting an inheritance. The earlier you start teaching your kids about money matters, the better off they’ll be in the future. Financial literacy should go beyond saving and spending but also include budgeting, financing, and investing.

#4 Share Decision-Making

It’s common for older generations not to trust younger generations with inheritance. But without educating and delegating responsibilities, this can become a self-fulfilling prophecy.

Give them a voice in the family business. Allow them to make decisions about their own financial future. This can go a long way in teaching valuable lessons about financial responsibility and is an olive branch showing them that you trust them to make wise decisions.

#5 Consider Investment Advisory Services

The last thing you want for the next generation is to inherit your assets and sit on them. When your money isn’t making money, you’re losing money. Consider using investment advisory services to help them learn how to manage their funds and keep them on track for the future.

A registered investment adviser can help the next generation plan for their retirement, avoid estate taxes and ensure everything is running smoothly while you’re here and after you’re gone.

#6 Meet With an Estate Planning Attorney

The best way to tee up the next generation for a seamless transfer of wealth is to make a plan. A California estate planning attorney can keep you abreast of all the current (and legal) wealth transfer strategies and help you achieve major goals like reducing tax liability and keeping your estate out of probate.

When choosing your lawyer, choose a team experienced with wealth preservation and asset protection so your family can keep your estate intact.

Get Wealth Planning That Protects Your Legacy. Call Meier Law Firm.

As we buckle up for the greatest transfer of family wealth, preserving those assets from previous generations is the top priority.

That starts with an estate plan that helps you protect, grow, manage, and transfer assets effectively while you’re here and long after you’re gone.

The good news is getting the help you need is just one phone call away. Book your wealth planning consultation with Meier Law Firm today.