Texas Multigenerational Wealth Planning

Multigenerational wealth planning aims to provide clarity and guidance on how your estate will be handled for your beneficiaries over generations. It involves big picture issues like business succession and wealth transfer plans and the details of managing estate planning documents and addressing tax implications.

Multigenerational wealth planning isn’t just about passing down your legacy, though—it also helps you plan for your own future. Thorough planning allows you to develop financial strategies to:

• Make sure your plan for retirement income keeps up with inflation
• Manage IRA withdrawals without incurring tax penalties
• Plan for medical and long-term care costs

You’ve worked hard to create a financial bedrock for your loved ones. If not properly managed, your riches could turn to rags due to several causes, including:

• Poor financial decision-making by a beneficiary
• Wonton Spending
• Creditors, Predators, and Future Ex-Spouses
• Federal estate taxes
• Probate costs
• Creditors suing your estate for payment

All of these factors underscore the importance of implementing strong wealth protection strategies.

Working with a knowledgeable estate and financial planning attorney to assess risks to your assets can help future generations of family minimize and/or avoid these issues altogether.

At SMC ESQ PLLC, our multigenerational wealth management and estate planning attorneys collaborate with your other professional advisors to create a plan that represents your goals—then we can help you ensure that plan is properly implemented on your behalf. Contact us today to discuss how we can help you.

Dynasty trusts are one of the more popular options for long-term planning goals. Dynasty trusts provide several protections for your financial assets, including against greedy creditors and tax obligations. Texas recently extended the limit on dynasty trusts to 300 years, so you’ll be able to support your family for several generations.

Another important aspect of managing your multigenerational wealth goals is implementing a borrowing strategy. This will not only protect the future finances you bequeath to your beneficiaries but can also benefit your asset protection options today.

Premium finance life insurance trusts can shield your estate and loved ones from excessive estate taxes while maximizing the financial support it provides. This can help pay any estate taxes your Estate may owe upon your death.

A private foundation is ideal if you plan to make charitable contributions with your estate but want more control and a broader community impact. This form of multigenerational wealth management allows you to offer more than a monthly check to your favorite organization. Instead, you can create grants for specific families or individuals, set up scholarships, and more.

Private foundations must stay compliant with a number of strict regulations, but when properly implemented, they offer estate planning advantages, including:

• Providing a permanent funding source for charitable organizations you support
• Income tax savings
• Transferring crucial income to your designated charities and causes
• Keeping your loved ones involved in your philanthropic goals

You worked hard to build and sustain your business, but have you taken the steps needed to secure your business’ future after you retire or pass on?

When you run a business, there are many calculations to make about succession:

• How will you exit the business?
• If you had to sell today, what tax consequences would you face?
• How will transitions be structured?
• What kind of input will you have on leadership decisions?
• How will your vested interests get distributed?
• What type of tax planning needs to take place to avoid tax liabilities?

For many business owners, their business represents the main portion of their assets. It’s essential that the value of the business is maximized and that you can continue to generate cash flow to fund retirement. A skilled attorney with experience in business succession planning can help you understand your options and what they mean for managing your wealth.