Successful entrepreneurs often struggle with estate planning when it comes to their children. Will knowledge of large inheritances to come create spoiled and unmotivated adults? How can wealth be shared across generations while fostering family values that include a strong work ethic and service to others? A recent article appearing in Forbes, “The Successful Entrepreneur's Guide to Leaving a Financial Legacy That Won't Spoil Your Kids,” presents one family’s solution for passing along wealth and empowering generations of children.
The family is one of the richest families in history: the Rockefellers. Their fortune is still going strong today, six generations later. They maintained their fortune by creating trusts to protect the family wealth. Trusts can have specific rules for determining how and when heirs are allowed to access money. This is the key to giving your children access to funds without eliminating their potential to achieve success on their own. Entrepreneurs often fear leaving their children a large sum of money, but a trust lets you attach some strings.
When you work with a qualified estate planning attorney, you can customize a trust to personify your wisdom and values. One way to pass on your wisdom, knowledge, and experience to the generations that follow is to a Statement of Purpose, or life philosophy. This can be reread and used to guide generations to come. This is just one way to leave a strong financial legacy for your kids.
Creating an estate plan that centers on a financial legacy trust does far more than simply create a trust fund. Working closely with experienced estate planning attorney, you can create a lasting financial legacy that will enhance the next generation by teaching them values that emphasize their responsibilities to protect, preserve and perpetuate the family’s wealth.
For more information, explore our website and contact us to schedule a consultation today!
Reference: Forbes (June 27, 2016) “The Successful Entrepreneur's Guide to Leaving a Financial Legacy That Won't Spoil Your Kids”