Building wealth is one thing. Keeping it safe for the next generation—and the one after that—requires a different level of planning. Too often, families focus on growth without protecting what they have already built.
OmniStar Financial Group helps families design strategies that not only grow wealth but also ensure it lasts for decades. Protecting wealth across generations takes foresight, structure, and ongoing discipline.
Why Protecting Wealth Across Generations Is Different
Passing wealth to children and grandchildren involves more than writing a will. Without thoughtful planning, taxes, family disputes, or poor financial decisions can erode an inheritance within a single generation.
- Estate taxes can take a significant share if they are not planned for.
- Assets may be mismanaged without oversight or structured guidance.
- Beneficiaries may not be prepared for the responsibility of managing large sums of money.
According to a Williams Group study, 70% of wealthy families lose their wealth by the second generation, and 90% lose it by the third. Planning makes the difference between legacy and loss.
Explore how OmniStar helps families protect and grow wealth with comprehensive wealth management.
Strategy 1: Use Trusts to Create Structure and Protection
Trusts remain one of the most effective tools for legacy planning. They create rules for how and when assets are distributed, shield wealth from creditors, and provide important tax advantages.
- Revocable living trusts provide flexibility during your lifetime while simplifying estate transfer.
- Irrevocable trusts offer stronger asset protection and potential tax savings.
- Generation-skipping trusts allow efficient wealth transfer to grandchildren, avoiding certain layers of taxation.
The type of trust depends on family goals and the complexity of assets, but for most multi-generational estates, a trust is essential. Learn more about how trusts work from Investopedia.
Strategy 2: Build Tax Efficiency Into Your Plan
Taxes are one of the biggest threats to successful wealth transfer. With proactive planning, much of that impact can be minimized.
- Strategic gifting during your lifetime reduces the taxable estate and allows you to see your heirs benefit.
- Roth conversions provide heirs with tax-free growth and distributions.
- Tax-advantaged accounts such as 529 plans for education or HSAs for medical expenses create targeted, efficient wealth transfers.
Tax law is always evolving. Without reviewing strategies regularly, families may miss new opportunities or expose themselves to avoidable liabilities.
Strategy 3: Educate the Next Generation
Even the most carefully designed plan will falter if heirs are not prepared to manage the assets they receive. Education is one of the most overlooked aspects of wealth transfer.
- Hold family meetings to share financial values and long-term goals.
- Provide financial literacy education to young adults before they inherit.
- Offer gradual introductions to investment management, real estate, or business operations.
According to PwC’s Global NextGen Survey, only 24% of next-generation family members feel fully prepared to manage inherited wealth or businesses. Families that include education as part of their planning reduce the risk of mismanagement.
Strategy 4: Diversify Beyond Traditional Assets
Concentration in a single stock, business, or property makes multi-generational wealth fragile. Diversification builds stability and reduces dependency on any single market trend.
Balanced legacy portfolios often include:
- Public and private market investments
- Real estate across different geographies
- Alternative assets designed to hedge against volatility
By diversifying, families reduce the risk of wealth erosion and create a more sustainable foundation for future generations.
Strategy 5: Review and Update Regularly
Wealth planning is not “set and forget.” Laws change. Markets shift. Family needs evolve. A strategy that worked five years ago may no longer fit today’s realities.
- Schedule annual reviews with your advisor.
- Update estate documents after major life events such as marriage, divorce, or the birth of children.
- Revisit tax strategies when new legislation is enacted.
Regular reviews keep plans aligned with both family goals and external conditions. Schedule a strategy review with OmniStar to ensure your plan is up to date.
Who Benefits Most from These Strategies
While every family can benefit, these strategies are particularly important for:
- Families with significant business or real estate holdings
- Investors preparing to transfer substantial assets to children or grandchildren
- Families who want to align their financial goals with shared values and prevent disputes
See who we serve at OmniStar Financial Group in Wilmington, NC.
Build a Legacy That Lasts
Multi-generational wealth does not happen by accident. It requires intentional planning, smart structures, and family engagement.
By using tools like trusts, tax-efficient strategies, education, and diversification—and by reviewing plans regularly—families can build legacies that truly last.
Contact OmniStar Financial Group to start protecting your family’s wealth for generations to come.
