For some families, wealth becomes an end in itself: a number to reach rather than a foundation to build on. Clear goals and a long-term vision are essential to financial health, but stopping once you’ve hit that number risks missing the point of the wealth altogether. The real work — and the key to a meaningful family legacy — is figuring out what that wealth is for.
At Legacy Private Wealth Partners, we spend a lot of time helping clients establish their legacy. This process goes far beyond establishing an estate plan or making a charitable gift. It’s the intersection of two questions: “How do we protect what we’ve built?” and “How do we make sure it stands for something?” Families that answer both questions well tend to have one thing in common — they treat legacy as an ongoing practice, not a one-time decision.
Legacy Is More Than a Number on a Balance Sheet
It’s tempting to think of your legacy purely in financial terms, such as the size of the estate or the amount you’ve left to heirs or donated to charity. However, the most successful families define legacy differently. Instead, they focus on the character wealth builds, not just the capital it preserves.
Some of the questions these families ask themselves:
- What do we want our wealth to make possible, beyond our own comfort?
- What did we learn from how our own parents or grandparents handled money? What do we want to do differently?
- If our children or grandchildren could describe our family’s values in one sentence, what would we want that sentence to be?
These are the sorts of questions that no comprehensive financial plan can answer. They require deep thought and consideration as an entire family — and across multiple generations.
Protecting the Estate Is Part of the Legacy
If establishing your family’s purpose is the philosophical foundation of your legacy, then building it must start with estate planning. An estate that’s poorly structured can be eroded by unnecessary taxes, family disputes, or a lack of clarity about intent — all of which pose a threat to an enduring legacy. An estate that’s thoughtfully built, on the other hand, can fund a child’s education, seed a grandchild’s business, or support a cause for decades after you’re gone.
A sound estate plan typically addresses:
- Wills and trusts that reflect current wishes and family priorities
- Tax-efficient transfer strategies that keep more of the estate working for the family and less going to unnecessary taxation
- Business succession planning for families whose wealth is tied to a company
- Guardianship and incapacity planning so a health event doesn’t create a governance vacuum
- Beneficiary designations, which are often overlooked but can override even the most carefully written will
Charitable Giving as an Extension of Values
Once the protective groundwork is in place, charitable giving becomes less about writing checks and more about expressing the family’s values. Two of the most common vehicles for families are Donor-Advised Funds and Charitable Remainder Trusts.
- Donor-Advised Funds (DAFs) function like a charitable investment account. You contribute cash, securities, or other assets, receive an immediate tax deduction, and then recommend grants to qualified charities over time, all on your own schedule. DAFs are often a natural entry point for families who want to involve children or grandchildren in giving decisions, since they can discuss and choose grants together each year.
- Charitable Remainder Trusts (CRTs) serve a different purpose. They let families convert an appreciated asset (like concentrated stock or real estate) into a stream of income for you or your heirs, with the remainder eventually passing to charity. For families holding a highly appreciated position, a CRT can reduce the short-term tax impact, generate income, and still fulfill a long-term charitable goal.
The right vehicle for charitable giving depends on the type of assets a family maintains, their gifting timeline, and their overall goals. Working with an advisor can help clarify these goals and align them with the right gifting structure.
Building Family Buy-In That Lasts
True legacy has to be multi-generational. That’s why communication among family members is such a key ingredient to achieving long-term goals. Creating buy-in at every level of the family takes more than drafting estate documents.
Here are a few strategies for helping build habits and align family members:
- Hold a dedicated family meeting. The best time to talk about family legacy isn’t over the dinner table at a holiday, but during a dedicated meeting where everyone is invited to come prepared with thoughts and ideas about what legacy means to them.
- Write a family mission statement. Treat a mission statement like an answer to the question of “What is our wealth for?” A shared response starts with shared discussion.
- Give younger family members real decision-making experience. The next generation should feel empowered and part of the family’s legacy even before they inherit assets. Consider letting younger generations weigh in on where to direct charitable contributions or inviting them to join estate planning conversations.
Treating Legacy Like a Practice
The families who are most successful with legacy planning don’t treat the process as something that only needs to be done once. Instead, they treat it as an evolving concept. Priorities may change as younger generations age and begin taking a larger role in the family’s affairs, which is a good thing. Legacy isn’t built in a day — and it isn’t decided in one, either.
At Legacy Private Wealth Partners, we firmly believe in the power of wealth to do good and bring families together with a shared sense of purpose. As advisors, we strive not just to craft plans, but to participate in the legacy-building process from the beginning, working to understand your goals, your purpose, and putting the tools in place to help you achieve them for generations to come.
The information provided here is for general informational purposes only and does not constitute tax advice. Readers should consult a qualified tax professional for guidance specific to their individual circumstances.
Advisory Services offered through Concurrent Investment Advisors, LLC, an SEC Registered Investment Advisor. Brokerage services offered through Purshe Kaplan Sterling Investments (PKS), Member FINRA/SIPC, Headquartered at 80 State Street, Albany, NY 12207. PKS and Concurrent Investment Advisors, LLC d/b/a Legacy Private Wealth Partners are not affiliated companies.
