Multi-Generational and Family Business Planning in Oregon
After painstakingly creating wealth, the next hurdle should be protecting your assets and securing your financial goals for future generations.
This step is essential because 90 percent of wealthy families lose their wealth after the third generation. That is why our team of experienced generational wealth advisors in Oregon offers all sorts of comprehensive wealth planning and management services across the state.
What Is Multigenerational Planning?
Multi-generational planning involves preparing to transfer your wealth to younger generations. With thorough planning, your life’s work is successfully transferred to your children, who pass it down to their children when the time is right.
Multigenerational family wealth planning ensures financial stability among the generations in the family with the transferal of assets, family business, and even financial gifts to younger relations.
Why People Hire Us
What are the Key Components of a Multi-Generational Wealth Planning?
With the constant increase in fortune, you should consider financial planning for multigenerational families to ensure that your assets are shared to achieve your future goals.
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Employ multi-generational asset allocation
While most people often develop reduced risk tolerance as they age, multi-generational asset allocation can help lessen the risks.
In this case, the investment time horizon depends on generations of the family, not just yours, so the liquidity tolerance is also shared among the family.
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Leverage your gifting
Maximizing the yearly gift exclusion can reduce your potential estate tax liability. With this straightforward strategy for generational planning, you can remove assets and their potential appreciation from your taxable estate and reduce the burden on your heirs.
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Consider a philanthropic strategy
You can consider philanthropy, a long-term wealth management strategy, by creating a Donor Advised Fund (DAF) or a family foundation to structure the donation process.
Contributing to a DAF makes you eligible for a tax reduction during the contribution. Upon your passing, your successor directs subsequent donations in the form of cash, securities, and other assets.
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Explore trust funds
A trust is a fiduciary arrangement for a third party to hold assets for the beneficiary or beneficiaries on behalf of the asset owner.
With multi-generation trusts, you can protect assets from estate taxes and creditors ensuring as much as possible goes to your cross-generational families.
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Consider life insurance
Your life insurance can cover the cost of living for your family and reduce the estate tax burden.
Irrevocable life insurance trusts (ILITs) are paid out upon the insured’s passing. Since trust outside the estate controls the life insurance policy, it’s not a part of the policyholder’s estate and is not taxable.
Who Is It For?
Our clients for multigenerational financial planning are;
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The sandwich generation
These are adults between 50 and 65 years old, “sandwiched” between young or grown children and aged parents.
They are caught between their financial demands and retirement plans, supporting children with college or post-college plans, and assisting aging parents with elder care plans.
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Millennials
These are the adult children of our clients that want to ensure intergenerational sustenance.
We proffer post-college suggestions on if they should stay at home, rent, or buy a house. We advise them on how to save, invest, approach student loan payments, etc.
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Aging partners
Our goal is financial asset protection for our aging partners and their children and grandchildren without compromising their needs.
Interactive Wealth Advisor attorneys and accountants help you achieve your different objectives, including living arrangements.
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People looking to create a legacy
We can help our clients create a legacy by opening a charitable multi-generational trust. You can name a successor to direct the funds upon your death.
How Can IWA Help?
After achieving significant financial strides, you should ensure you pass as much money as possible to your heirs with minimal probate and taxation issues. IWA can help with this in the following ways:
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Retirement
Our advisors consider each client’s unique situation for the most suitable IRA retirement planning.
After careful consideration and IRA planning, we find the most beneficial time to convert Traditional IRA funds to a Roth IRA during retirement.
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Investing for heirs
We study your assets and retirement needs for any excesses in your portfolio and develop an investment strategy that your children or grandchildren can inherit.
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Charitable giving
If there is still some extra money, we can help you establish a charitable foundation or donor-advised fund.
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Annual gifts
We provide guidance, including the most appropriate time to gift assets or multi-generational trusts to your children and grandchildren annually.
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Family loans
Our team of family business advisors suggests suitable times for family loans based on IRS provisions.
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A firm financial foundation
We also share intentional financial resources with the next generation or two to guide the next generation of wealth enthusiasts progressively.
Best Practices for Multi-Generational Financial Planning
We work with our clients to develop a plan to aid them in achieving their multi-generational legacy planning goals by considering the following factors:
- financial earnings,
- marital status,
- roles and responsibilities,
- financial goals and needs,
- immediate expenses for the youngest and oldest household members.
Our Process
Why Choose Us?
With significant wealth comes significant possibilities… and challenges.
So, it would help if you had an experienced team to manage the wealth and accompanying family dynamics. Our team at IWA offers
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Advice that aligns with your values
While getting to know you, we ask specific questions and listen attentively to understand you and your goals and values. Then we give financial windfall advice to support those objectives
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An objective third party for complex topics
We understand the complexity of wealth planning topics. So, our wealth planning analysts are your designated, unbiased third party for every financial decision.
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Dedication to your next generation
Our team also works with your children and grandchildren to educate and prepare them for the obligations, possibilities, and challenges they may encounter with the multi-generational family business.
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A team of experienced advisors
With our wealth of experience, we can help you navigate any seemingly unique financial puzzles.
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The solution to financial burdens
We recognize that you have a lot on your mind during retirement, from your finances to your family, legacy, and passions.
Let us handle the heavy thinking so you can hang your boots and enjoy retirement.
Frequently Asked Questions
What is Multigenerational Wealth?
How Does Multi-Generational Financial Planning Work?
How Do I Set Up My Family for Generational Wealth?
- Financially educating the younger generation on wealth preservation
- Establishing a multi-generation trust to protect your wealth
- Developing a well-crafted estate plan to serve as a legal framework for your future financial goal fruition.
- Plan for the financial futures of the younger and older generations
How Do You Create Multigenerational Wealth?
- Diversify your portfolio
- Build a generational business you can pass down
- Leverage life insurance
- Commit to your child’s education
- Teach your children personal finance
- Have multiple streams of income
Why Does Generational Wealth Not Last?
- Beneficiaries were not involved in the discussions and decisions regarding managing wealth.
- There were poor Lines of Communication that compromised trust in the family