Your financial legacy is more than a balance sheet—it’s your life’s work, your beliefs, your story, and the impact you hope to leave behind. While traditional estate planning focuses on distributing assets, true legacy planning goes deeper.
It asks: What do I want my wealth to mean for the people I love?
For affluent families, particularly those in their 40s to 60s, this is a pivotal question. You may be supporting aging parents, launching adult children, or planning for future generations. And as you do, it’s worth considering how to preserve not just your wealth, but your values.
The Risks of a Wealth-Only Legacy
Research shows that up to 70% of wealth transfers fail by the second generation. Not because of bad investments or poor legal documents—but because families weren’t emotionally or
relationally prepared.
Here’s what often goes wrong:
● Lack of communication between generations
● Unprepared heirs who view inheritance as entitlement
● Misalignment around values, philanthropy, or stewardship
Without clear intention and guidance, wealth can create confusion or even division. But when paired with wisdom and purpose, it becomes a powerful force for generational impact.
What Is a Legacy Plan?
A legacy plan is about more than who gets what. It integrates:
● Financial inheritance and estate documents
● Family culture, values, and vision
● Philanthropic intentions and causes that matter to you
● Personal stories, lessons, and guiding principles
It goes beyond the legal mechanics to answer:
● What do I want my children and grandchildren to know about who I am?
● How do I want them to think about wealth, generosity, and responsibility?
Tools for Transferring Values Across Generations
The good news? There are practical tools to bring your legacy plan to life.
1. Family Mission Statement
Think of this as your family’s north star. It articulates why your wealth exists and how you hope it will be used. It might include commitments to education, community, faith, entrepreneurship, or service.
2. Heir Education
Wealth brings complexity. Helping children or grandchildren understand financial literacy, taxes, investing, and the purpose of inherited wealth prepares them for future responsibility.
This education doesn’t have to be formal. It could be:
● Inviting your children to a financial planning meeting
● Sharing lessons you learned from managing money
● Giving them small philanthropic budgets to steward
3. Charitable Giving Involvement
If generosity is part of your legacy, involve your family early. This might look like:
● Creating a donor-advised fund (DAF)
● Making annual family giving decisions together
● Volunteering or supporting causes that reflect your values
4. Legacy Letters (Ethical Wills)
Unlike legal wills, legacy letters pass down wisdom, not assets. They may include:
● Stories that shaped your beliefs
● Hopes for your children and grandchildren
● Reflections on mistakes and what you learned
These letters are often the most treasured documents in a family’s estate.
5. Annual Family Meetings
Establishing a rhythm of open, honest communication builds trust. These meetings don’t need to be formal—the goal is to foster transparency and shared purpose around the family’s financial and relational life.
Aligning Your Estate Plan with Legacy Intentions
A legacy plan is only as good as the documents that support it. Make sure your:
● Trusts, wills, and beneficiary designations reflect your long-term goals
● Trustees and executors understand your values and are capable of executing them
● Instructions for distributions balance structure with flexibility
● Charitable plans are documented in a tax-efficient, values-aligned way
At Wealthquest, our CFP® professionals work closely with our in-house CPAs and estate planning partners to ensure that your financial, tax, and legacy intentions are fully integrated.
The Wealthquest Approach: Values Meet Strategy
Passing down wealth is complex. Passing down wisdom is even more personal. That’s why Wealthquest offers more than investment management or estate document reviews. Our All Under One Roof model brings together CFP® professionals, tax experts, and planning advisors to help you design and execute a legacy that reflects who you are—and who you hope your family becomes.
Whether it’s:
● Structuring a trust with flexibility for future generations
● Funding a charitable strategy with tax-smart giving
● Facilitating conversations between parents and children
...we help you build a plan that brings clarity, continuity, and connection.
Final Thoughts: Start with Intention
Wealth is a tool. The question is: what will you build with it?
Legacy planning invites you to be intentional with your story, your values, and your influence. And while no plan can predict the future, the right plan can prepare your family for it.
If you’re thinking beyond just dollars and cents, Wealthquest can help. Let’s work together to create a legacy plan that reflects your values, prepares your family, and makes your wealth a lasting gift—not a burden.
For informational purposes only. Past performance is not indicative of future results. Investing involves risk, including the possibility of loss of principal. Wealthquest Corporation (“Wealthquest”) is an SEC registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. The ideas and opinions expressed herein do not constitute legal, tax, or investment advice or a recommendation of any particular security or strategy. Before making any investment decision, you should seek expert, professional advice and obtain information regarding the legal, fiscal, regulatory and foreign currency requirements for any investment according to the laws of your home country and place of residence. Any forward-looking statements or forecasts are based on assumptions and actual results may vary. Information presented from third parties is believed to be reliable, but no warranty is provided. Wealthquest is not required to update information presented, unless otherwise required by applicable law. For more information about Wealthquest, including our Form ADV Part 2A Brochure, please visit https://adviserinfo.sec.gov/firm/summary/141473 or contact us at 513-530-9700
