- Posted December 5, 2022
How to Keep Wealth in Your Family
When you are first growing your personal wealth, it is all about building up your finances. But once your wealth is established, you also have to start figuring out how you can make sure that wealth will turn into generational wealth. Being able to make that transition can improve your life and the lives of your children and the generations that come after you. Here are some tips on how to turn your finances into generational wealth and properly plan for transition to your children according to our certified financial planners in Hartford, CT.
Use Life Insurance
Many people feel like they don’t need life insurance to help their family maintain their wealth, but that usually isn't true. Life insurance is something you should invest in as soon as you have dependents who are counting on you.
The insurance money can help them in the case of your death, so you know their financial situation will be maintained. Becoming ill can have a lot of expenses, and that debt can pile up for your family if you don’t have something in place to take care of them after you pass.
Set Up a Trust
As your finances grow, you can also use financial tools to help that money stay with your family. A trust is one of those tools and can help you to ensure that your finances go where you want them to go. There are also tax benefits to having money in a trust, so taking advantage of them can help you to save money over time. Our estate planning and financial advisory specialists in Hartford can help.
Using trusts can also simplify things for you and your family members, so you can avoid more complicated court proceedings. A living trust can prevent a home from going through probate court. This is important in the case of a death since probate can elongate the inheritance process.
Plan for the Future
The most important thing you can do to protect your wealth for your family is to plan ahead. Most people assume that they have all the time in the world to figure out what they should do with their money, but this isn’t always the case. Instead of planning to make plans in the future, make time now to figure out what you want. By doing this, you can ensure that your money is protected and that your family can use it for the things they need.
As you start working towards a brighter future for yourself and your family, you need to protect your finances. By taking steps to legally determine where your money will go, you can help to ensure your family is in a good position. This can free you up to enjoy life and get even more from the things you do each day.
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Contact Tenpath Financial Group for certified financial planning services.