Jesse Banthe
Photo provided
How often do you think about leaving a legacy for posterity?
It is not something many people like to think about because it involves the final consideration of our own death. But what many people don’t realize is that after we leave, regardless of the effort we put into making an impact, the transfer of wealth has consequences that can be positive or negative. It means that there is
Counseling families with the means, there are people doing an amazing job of preparing future generations for the blessing (and challenge) of receiving a financial inheritance. Others struggle with how to pass wealth on to their children and grandchildren who may not be ready to receive it.
In the case of multi-generational wealth, heirs may not know the story of their predecessors. We’ll leave the issue of teaching heirs the practical financial literacy skills needed to handle money for another day.
For now, we’ll focus on some practical ways families can create strong and lasting legacies.
Share stories from past generations
Historically, many inheritors did not acquire an IRA or brokerage account, but rather acquired a business or trade. In many ways, this made legacy inheritance easier.
In today’s world where children can’t directly follow in their parents’ footsteps, it’s important to keep the stories of previous generations alive and how they painstakingly built their lives. You might be surprised how interested you are in the story of A video of our grandparents on the family farm when the family was reunited many years ago is a treasured keepsake that helps our son learn about our family heritage.
build family unity
Money doesn’t solve everything and can often exacerbate family problems. But using it to create memories and spend time together (even as your children and grandchildren grow up) can build a sense of family unity. Family reunions become rare and it’s easy to lose family identity.If finances allow, gather your family outside of the holidays to relax, share memories, and focus on maintaining family relationships. Consider allocating resources for
share your story
I don’t recommend waiting until you share these, but writing or recording them digitally will be a huge blessing to future generations you will never meet, and will help your children and grandchildren carry your legacy. We can help you stay alive. There are countless tools and resources to help you do this.
prepare heirs for financial security
Many families do not want their children or grandchildren to know how much they will receive. There may be good reasons for this, but more often than not it can be a red flag that you weren’t ready to begin with. It’s easy for guilt about these situations and frustration with the choices they’ve made to paralyze you. Without knowledge and training, the results can be disastrous. This is where wise trust and wealth planning are key.
You don’t have to hand everything over to your heirs.
If charitable giving is a priority, consider getting your heirs involved and setting up ways they can help carry out your charitable cause. I’ve written before about certain tools and strategies that make this easier and help pass on a legacy of generosity, such as Donor His Advised Fund.
Growing and protecting the fruits of a lifetime’s work is important, but what was the point of all that effort when all that was left was a pile of money and no lasting legacy? We strongly recommend that you discuss this with a fiduciary advisor who is experienced in conducting
Jesse Bunse, CRPC, is a Certified Financial Planner Professional and member of the Financial Planning Association of Greater Kansas City. He is a senior financial planner at He Keen Wealth Advisors, his SEC-registered investment advisor in Overland Park.
