Passing Wealth to the Next Generation: Planning Beyond the Dollars

Welcome to Hot Take Thursday, our weekly series where we ask attorneys at Law Stein Anderson to weigh in on timely legal questions.

AWelcome to Hot Take Thursday, our weekly series where we ask attorneys at Law Stein Anderson to weigh in on timely legal questions.

An estate plan can identify who will inherit a home, investments, or a family business. But it cannot, by itself, prepare someone to manage those assets or settle the questions an inheritance may raise within a family.

For this week’s Hot Take Thursday, we asked four Law Stein Anderson attorneys:

“When passing wealth to the next generation, what is one thing families should plan for beyond the dollars?”

Their answers focused on preparing beneficiaries for what they will receive and considering how the transfer could affect family relationships.

Prepare Beneficiaries for What They Will Inherit

Kianna C. Parviz encouraged families to consider how beneficiaries will learn to responsibly manage their inheritance. That preparation may be just as important as deciding what each person will receive.

Desiree F. Rivera pointed out that the type of asset matters, too. Someone inheriting investments may face very different decisions from someone receiving a business interest or real property. Beneficiaries may need to understand what they will own, what responsibilities come with it, and where to turn for guidance.

Families can begin those conversations before a transfer takes place, tailoring them to each beneficiary’s age, experience, and likely role. The discussion may also reveal where additional education or professional support would be helpful.

Consider How the Plan May Affect Family Relationships

For Monique Nevarez, planning beyond the dollars means considering the family’s values and relationships. An inheritance may provide financial security, but families should also think about how decisions surrounding that wealth could affect the people involved.

Bryan K. Johnson similarly urged families to anticipate family dynamics and potential conflict. Siblings might have different expectations about a property, disagree about a business’s future, or interpret a parent’s decisions in different ways.

No plan can predict every reaction. Families can, however, consider where confusion might arise and whether explaining the goals behind certain decisions would be helpful. They can also think carefully about who will be responsible for carrying out the plan, particularly if that person will need to work closely with other family members.

Make Room for These Questions in Estate Planning

Passing wealth to the next generation involves decisions about assets and people. Who is ready to take on responsibility? What support might they need? Are there family expectations that should be addressed while the person creating the plan can still speak for themselves?

Those questions do not have one answer for every family. Discussing them as part of the estate planning process can help shape a plan around both the assets being transferred and the people who will receive them.

If you are creating or reviewing a plan for the next generation, the attorneys at Law Stein Anderson can help you consider the transfer and what may happen afterward. consider both the transfer and what may happen afterward. tested by a crisis.