Defining Family Wealth Beyond Finances

A multigenerational family builds more than just dollars and cents–they create an ongoing legacy of values and ideals. While passing down generational wealth is one way to leave a legacy, your values go far beyond your balance sheet. Although it may seem like creating a legacy is reserved for the ultrarich, there are many ways your hard-earned and wisely invested assets can make an impact that speaks to you and your family's deeply held values. Let’s look at three ways your family can leave their mark.

A Wealth of Education

Do you remember the excitement of holding your diploma in your hand or watching your child walk across the stage to graduate? These days, that excitement is often tempered by the sobering cost of higher education. Every dollar a student can find in scholarships or college savings eliminates student loan debt and offers the opportunity to start life without the burden of debt.

Using generational wealth to fund education for future generations is much more attainable than many realize. There are several easy and impactful ways to use your wealth to do so, including:

• Establishing a scholarship fund. Your scholarship could benefit a particular area of study, students of a certain income level, or an extracurricular activity. Even if the scholarship only covered the cost of books, it could mean the difference between a student working extra hours versus spending that time studying.
• Establish an educational trust. If you want to fund education for future generations, you can leave money in a trust that can impact several generations.
• Fund a 529 college savings account. These accounts can be transferred between family members, making them versatile tools for using generational wealth to fund education, even after you are gone.

The Power of Philanthropy

Undoubtedly, you already have causes close to your heart, and you actively give. But does your family join you? It’s time to invite your family to participate and discuss how your philanthropic efforts can evolve.

As you discuss your plan, consider all the ways generational wealth can support the causes that mean the most to you and your heirs. Committing to give money to an organization's general budget with regular donations or funding a specific need are great ways to help your favorite non-profits. Need a family outing? Donate your time. Every organization needs hands and willing hearts to do the non-glamourous work. Showing that your time is just as valuable as your money is an important value to pass on.

Involving your family in your philanthropic efforts also opens the door for important conversations about generational wealth. Institute a family-giving plan that includes input from all generations. As younger people get more involved, your strategy may evolve. And watching the next generation learn social responsibility is a gift in itself.

The Wealth of Experience

While an inheritance has undeniable value, generational wealth isn’t limited to dollars and cents. As the foundation of your family, you have a wealth of experience and wisdom that must be preserved. Older generations can offer a glimpse at a period where every innovation was revolutionary, at historical events whose implications have rippled through history, and at the values that have persevered through it all.

Offering your time can be one of your most valuable gifts. Sharing your stories and fostering relationships with younger family members can prove invaluable. If you have business connections, you can open doors for a budding entrepreneur or help them find the perfect first job out of college.

If you’re financially savvy, you can offer mentorship, financial literacy, and business acumen to help your descendants start with a firm foundation. More importantly, your experiences can help teach the values necessary for success–determination, thinking outside the box, and working ethically toward your goals. This wisdom can save your family years of struggle.

Conclusion

Generational wealth is a valuable tool, and teaching your family to use it well is an essential part of your financial planning. Sharing the values that have helped you succeed in life is also an important aspect of your legacy. As you define that legacy, you can share what’s most important to you–your values and wealth.

Duly registered and licensed Equitable Advisors Financial Professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.  Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services.  GE-7691513.1(03/25)(Exp.03/29)