Contributed by: Nicholas E. Gonzalez, CEPA, CRPS, CDMA

For many families with significant wealth, creating a lasting legacy that benefits future generations is a paramount goal. Intergenerational wealth planning goes beyond simply transferring assets—it requires a thoughtful approach to ensure that your values, priorities, and financial strategies align to serve your family well over time. At Granite Harbor Advisors, we believe intentionality is a cornerstone of successful wealth transfer, providing clarity, structure, and purpose for both current and future generations.

Importance of Intentional Wealth Planning

Without a deliberate plan, wealth transitions can become a source of conflict, financial mismanagement, or even the eventual dissipation of assets. The challenges of transferring wealth across generations are well documented. Studies show that as much as 70% of families lose their wealth by the second generation, and 90% lose it by the third (Source: The Williams Group, "Preparing Heirs"). Intentional planning can mitigate these risks by fostering stewardship, designing for tax efficiency, and preserving harmony within the family.

Building an Intentional Framework

Intergenerational wealth planning should address financial, relational, and strategic considerations. Below are a few core components of an intentional approach:

1. Clarify Family Values and Goals

• Begin by defining what wealth means to your family. Is it a tool for security, philanthropy, or entrepreneurial growth?
• Develop a mission statement that reflects your family’s values and long term objectives. This provides a guiding principle for financial decisions.

2. Implement Tailored Financial Strategies

• Work with a trusted advisor to create tax efficient estate plans, leveraging trusts, private foundations, or family limited partnerships where appropriate.
• Incorporate sophisticated life insurance strategies to provide liquidity, protect assets, and equalize inheritances.
• Optimize investments by combining access to public and private markets to diversify your portfolio and align it with your goals.

3. Facilitate Communication and Education

• Hold family meetings to discuss the purpose of wealth, expectations, and the mechanics of the estate plan. Transparency can prevent misunderstandings and build trust.
• Provide financial education for younger generations, equipping them with the skills to manage and grow inherited wealth responsibly.

4. Plan for Philanthropy and Legacy

• Encourage shared philanthropic efforts to instill a sense of purpose and unity among family members.
• Consider establishing a donor advised fund or charitable trust to formalize your family’s charitable giving.

5. Prepare for Contingencies

• Develop a robust business continuity plan if your family wealth is tied to a closely held business.
• Regularly review and update your estate plan to account for life changes, legislative shifts, and evolving family dynamics.

The Role of Professional Guidance

Intergenerational wealth planning requires expertise in multiple disciplines, including tax law, investment strategy, and family governance. Granite Harbor Advisors offers a team based approach to create a comprehensive and cohesive plan. By combining our access to both public and private investments, sophisticated insurance solutions, and tailored estate planning strategies, we provide clients with a unique advantage.

Our collaborative approach ensures that your plan is not only efficient but also reflective of your family’s unique dynamics and aspirations. This includes addressing sensitive topics, such as the distribution of wealth, expectations for heirs, and the emotional aspects of transitioning financial leadership.

Long Term Benefits of Intentional Wealth Planning

Families who engage in intentional wealth planning are better positioned to maintain harmony, preserve financial security, and create meaningful legacies. By focusing on shared goals and equipping heirs with the tools to manage wealth responsibly, you can minimize the risk of mismanagement and maximize the potential for long term success.

At Granite Harbor Advisors, we understand the complexities and emotional weight of intergenerational wealth planning. Our team is committed to guiding you through every step of the process with care, expertise, and purpose. Together, we can craft a plan that reflects your values, helps protect your assets, and prepares the next generation to carry forward your legacy with confidence. Contact us today to explore how intentionality can transform your family’s wealth planning journey.