Building a Financial Legacy for the Next Generation

When people think about leaving a legacy, it’s often more than just passing down wealth—it’s about passing down values, knowledge, and opportunities that can shape the lives of future generations. Whether you have a little or a lot to leave behind, building a financial legacy takes planning, intention, and heart.

Here are key ways to create lasting impact for your children, grandchildren, or loved ones through thoughtful wealth transfer, financial education, and the right financial tools.

1. Be Intentional with Wealth Transfer

Leaving money or assets to loved ones may seem straightforward, but without a clear plan, it can lead to confusion, conflict, or even unintended outcomes.

Some intentional steps to consider:

• Create or update your estate plan with the help of legal and financial professionals.

• Name beneficiaries on retirement accounts, life insurance policies, and other financial assets—and keep them current after major life events.

• Decide how assets should be distributed, whether through a will, trust, or combination of both.

• Communicate your wishes with family members in advance to help avoid misunderstandings later.

The goal is to ensure your wealth goes where you want it to go, in the way you want it to be used.

2. Teach Financial Literacy at Every Age

One of the most powerful ways to leave a legacy is by equipping the next generation with the knowledge and confidence to manage money wisely. Financial literacy is a lifelong skill that can shape how your children handle their own finances—and the assets you may one day leave them.

Here are some ways to start:

• Start young: Teach children the value of saving, spending, and giving.

• Be open: Share age-appropriate conversations about family finances and values.

• Model healthy habits: Let them see how you budget, save, and plan.

• Encourage responsibility: Use allowances, jobs, or savings goals to help them practice real-world money management.

• Support education: Consider financial literacy courses, books, or even involving them in planning conversations as they get older.

Your example and guidance can be just as impactful as any inheritance.

3. Use the Right Tools to Build Long-Term Impact

Beyond budgeting and saving, certain financial strategies can help preserve and protect your wealth for future generations. Depending on your goals, these may include:

Trusts

• A trust allows you to set specific rules around how and when your assets are distributed.

• Can help avoid probate, provide tax benefits, and offer greater control for families with unique needs (such as minor children or special needs dependents).

Life Insurance

• Life insurance can be a powerful legacy tool, offering tax-free funds to beneficiaries.

• It can also be used to equalize inheritances, cover estate taxes, or provide a financial cushion for your family’s future.

Gifting Strategies

• Annual gifts or contributions to education savings plans (like 529s) can help you support loved ones during your lifetime, while also reducing the size of your taxable estate.

Working with a financial advisor and estate planning attorney can help ensure the tools you choose align with your long-term vision and values.

Legacy is More Than Money

While financial assets can provide stability and opportunity, a true legacy also includes the values, lessons, and traditions you pass down. Whether you’re sharing family stories, charitable priorities, or the importance of hard work, your voice and values can shape the next generation in powerful ways.

Start Today, Plan for Tomorrow

You don’t need to be ultra-wealthy to create a legacy. With thoughtful planning and consistent action, you can build a financial foundation that lasts well beyond your lifetime.

If you're considering how to begin or enhance your legacy planning, reach out to your financial advisor to explore the strategies and steps that make sense for you and your family.

Building a legacy is about more than what you leave behind—it's about what you set in motion.