Do you have a significant net worth? Are you planning on leaving a significant net worth? Do you have plans in place to maintain that net worth for future generations?
If at the moment you don’t have a significant net worth and want to leave one behind, I suggest life insurance. I don’t care what age you are, if you are insurable go get a 30-year term policy of $1 million or more so you can leave some wealth behind. More may be a good idea depending on your goals and plans. Like leaving no debts behind and having college paid for all kids and grandkids.
Plans need to be in place since according to one article a staggering 70 percent of wealthy families lose their wealth by the next generation, with 90 percent losing it the generation after that.
Sustaining substantial wealth takes financial savvy–something that not all rich parents are passing along to their heirs. I have attempted to train all my kids with this knowledge. One gets it, another reasonably so, the last wishes he could comply somewhat.
I have seen families inherit wealth only to squander most of it. Buying cars and boats are wastes of money, these are depreciating assets not appreciating. Granted at any day the same can be said of stocks and mutual funds…
Plans and guidelines have to be put in place, Trustees have to of a great caliber and keeping up to date on everything, taxes, investments, investing vehicles and changing needs.
Also know that most of the plans will go to shit and the Trustee will have to think on their feet and your wealth may be on the wrong side of the stats, when it is all over…