By Stephen L. Thomas | June 20, 2024 | In
Being wealthy in your lifetime is one thing, but being able to pass it down is another. The latter is called generational wealth, which is the ability to pass wealth to future generations. Building generational wealth is no easy feat, especially if you’re a first-generation wealth builder. However, it can help create financial freedom and open a world of possibilities for your posterity. What Is Generational Wealth? Generational wealth is about passing wealth from one generation to another, and that usually happens by transferring assets. Heirs may inherit a range of assets, including: Stocks Real estate Retirement accounts Life insurance proceeds Businesses Intellectual assets Collectibles Money or savings There are many ways to pass these assets between generations. Here are three common approaches: Trusts: One way to transfer wealth is a revocable or irrevocable trust. While revocable trusts can be amended or canceled, irrevocable trusts cannot be altered unless all the beneficiaries agree or there’s a court order in place. Using a trust can be beneficial because in some cases, it can minimize taxes. This means both the creator of the trust and those who inherit