It’s the intention of the breadwinner of a family to want to preserve their wealth for future generations in the face of difficult situations. Multigenerational planning is an integrative approach that sees that the needs of all persons and age groups involved throughout the various stages of planning and how state policies, zoning, and building codes can be altered to ensure generational equality and accessibility is taken into consideration. It covers everything from needs assessment to the vision process, planning, evaluation, design, and implementation.
It attempts to make sure cities and communities remain accessible and safe for children, young adults, families, and adults. Furthermore, it encourages civic participation between the older and younger generations and helps in solving the general and unique concerns of individual age groups. Here are three things you should know about it.
1. Communication Is Key
A very essential factor in easing the transfer of wealth and assets is communication. Trust needs to be established if you’re to have a productive conversation about the topic. A good example is organizing family meetings to openly communicate. You should set ground rules such that everyone would be permitted to air their opinions without being criticized. This is not only applicable to the young adults in the family but also to the elders and leaders too.
Family conversations should be centered around the principles and values held by the family including traditions and history. Essentially, education is the crucial aspect of the conversation, and it is diverse. It covers financial intelligence, knowledge about the family business, how the wealth is invested every month, and the philanthropic responsibilities of the family. For the young ones, it’s an avenue to understand what’s expected of them as they grow up.
2. Document Every Important Detail
Documentation is the next step to take during and after a round table talk with the family. Everything spoken about in the meeting should be documented. As noted by the team behind https://bogartwealth.com/services/multigenerational-planning/, this is something you should take seriously because even though meetings are important, recollecting important information can be difficult. Proper documentation would serve as a reference for future generations.
Matters relating to the estate planning or empire should be well document including but not limited to wills, advanced medical directives, and durable powers of attorney. Trusts is an effective method to help foster the kind of estate planning desire you want. You can also hire a professional to help you in the process. They understand the challenges and solutions associated. They are also helpful with minors and family members who might require assistance when spending or planning, including relatives with disabilities/addictions.
3. Talking Is Easy, Doing Is More Important
When it comes to actually implementing said plans, only a very small percentage of people actually share the vision with their children or give an idea of what they stand to inherit. There are several reasons while people have cold feet. For some it might be anxiety from talking about the subject, not knowing which age is right to have such conversations, or not wanting to talk about death. The consequence of not having such discussions can result in the financial downfall of the family sometimes.
After spending years developing your family’s finances and estate, you wouldn’t want to lose everything you’ve worked for to someone else. That’s why multi-generational planning is important. You must take the time to meet experts to help you plan effectively.