Have you ever thought of building a wealth that will secure your great-grandchildren’s future? It’s no secret that the rich always have an advantage, despite the constant speech on meritocracy and equal opportunity. Money doesn’t buy you happiness, but it does pay for a lot of essential things…
How to distribute generational wealth
Now that we’ve already discussed how to build your wealth, you need to pass it down through the generations. Passing on an inheritance can be very complicated, especially if you are not prepared for it. Here are some thoughts that will help you manage the distribution of your assets smoothly…
An Estate Plan
If you have a large estate, this will be very complicated, It is precisely because it is complicated that you should make proper plans to ensure the smooth transition of your assets. You can consult with an attorney to make this step easier.
Every plan is different; it depends on what you have and how you want to divide it. If you contact a professional, as mentioned above, they can create a plan for you that will save you the inconvenience involved.
Writing A Will
Many people bypass the will writing stage because it seems stressful to them, almost as if they are preparing for death. But believe me, this is not the case. Don’t wait until you are on your deathbed to write your will because then you may not be able to make a proper decision.
Your will should include your exact wishes, and it is better if you are very specific. If you do not write a will, there will often be disputes in the family, bringing financial trauma.
Set up custody
What is a custodial account? A custodial account allows you to save money at the bank in the name of another person, usually a child, but the account is managed by an adult. In most states, children are responsible for their accounts at age 18, but it can be the case at age 21.
In most cases, a custodial account is set up for future goals, such as college.
Set up beneficiaries
In most cases, banks allow you to designate one or more beneficiaries for your account. So in the event of your passing, your beneficiary will have minimal paperwork to get their hands on your money. It’s a simple process compared to the hours of paperwork your family will need to complete if you haven’t designated a beneficiary.
Generational wealth for your family’s success.
Now you have a concrete idea of how to build your wealth. Building wealth can be very simple if you are committed. Once you have achieved your financial freedom, you should start thinking seriously about your generational wealth.
Before you start, make sure you have a safety plan in place to avoid wasting your time. Not every method mentioned above will work for everyone, so you need to find something that works best for you.
If you are already teaching your children about personal finance, they will be successful in the future. They will be able to make their way in the world with the knowledge of what makes the world go round: Money.
Now you are well equipped to face the financial world and to build your wealth. Keep in mind the tips and tricks, and do not get discouraged by the first difficulty you may encounter. Let us know in the comments if you have enjoyed our three-part series on generational wealth…