Written by You’ve probably heard the term estate planning, and maybe it sounded cold or too legal. But here’s the real deal. Estate planning is just a fancy way of saying generational wealth.
If you care about passing something on. Not just money, but values, vision, and wisdom. Then estate planning is your playbook.
So let’s walk through why it matters, what tools you need, and how to build a legacy that lasts.
Why Generational Wealth Fails (And How You Avoid It)
There’s a reason most families don’t stay wealthy. Studies show that 70% of families lose their wealth by the second generation, and 90% by the third. The numbers are shocking, and they point to one big truth: money without wisdom fades fast.
When someone doesn’t understand how to manage and grow money, it slips right through their fingers. It’s like giving someone a race car when they’ve only ever ridden a bike. They don’t know how to handle the speed, the control, the responsibility. And eventually… crash.
We’ve all heard the lottery winner stories. Someone gets $10 million and ends up broke in five years. Why? Because they didn’t become the kind of person who could hold onto it. Estate planning, at its core, is about helping your family grow into people who can manage the blessings you leave them.
And it’s not just random folks on the news. Celebrities face this too. Take Allen Iverson. An NBA superstar who made over $150 million but later said he didn’t even have enough money for a cheeseburger. Thankfully, a trust set up during his career protected $50 million for him until he turned 50. That single decision saved his financial future.
It’s not just about money. It’s about mindset. About passing on the character, wisdom, and habits that created the wealth in the first place.
Protecting Your Family With a Plan
Without a plan, your family’s future could get handed off to a stranger… the court system. If you pass away without any legal documents, the government steps in to decide who gets what. They’ll decide who raises your kids. They’ll decide how to divide your assets. And all of it becomes part of the public record.
Think about what happened with Prince. He died in 2016 with no will. He had no kids, and six siblings. After six long years of legal battles, two of those siblings sold their share of the estate to a record label. Now a company, not his family, controls part of his legacy. Do you think that’s what he would have wanted?
And then there’s Barry White. When he passed, he was separated but not divorced from his wife. Legally, she inherited everything. Even though he had a live-in girlfriend and nine kids. The girlfriend and children received nothing. Years of lawsuits followed, but the courts upheld what the paperwork said. Or in his case, what the paperwork didn’t say.
When there’s no clarity, conflict steps in. Family members argue. Lawyers get paid. And what you worked hard for gets chipped away.
That’s why having the right documents in place matters.
- A will ensures your wishes are clear.
- A durable power of attorney gives someone you trust the ability to act on your behalf if you can’t.
- A healthcare directive spells out your preferences for medical decisions, so your loved ones aren’t left guessing.
And remember, these documents aren’t one-and-done. Life changes. Divorce, remarriage, new children, new businesses… your estate plan should grow and adjust with you.
Passing Wealth With Purpose
A will is powerful, but sometimes, you need more control. That’s where a trust comes in.
A trust allows you to manage how and when your assets are passed on. Unlike a will, it doesn’t go through probate, so it stays private and efficient. You can protect your heirs from making poor financial decisions, from creditors, and even from themselves.
Want your kids to get money only after graduating college? Done. Want to ensure your spouse has income, but protect the principal for your kids? Done. Want to delay a large inheritance until age 50, like Allen Iverson’s team did for him? Absolutely.
Michael Jackson had a trust, but he forgot to fund it. That means he set it up, but never transferred any assets into it. So even though he had the right idea, all of his assets had to go through probate anyway, which delayed distribution and made everything public. It was a costly mistake.
You can use the same strategy… the right way. If one child wants to run the family business while others want their share in cash, a trust can provide income to those who want to cash out, while still keeping the business intact for the one who wants to continue your legacy.
It’s about flexibility. About options. About keeping your intentions intact even after you’re gone.
Passing On More Than Just Money
Money is only part of your legacy. Your values, beliefs, and wisdom? That’s the heart of it.
Your family needs to know not just what you did, but why you did it. That’s where tools like a legacy letter or a recorded video come in. You can explain your decisions, share your hopes for the future, and give your loved ones something more than just a stack of papers.
Imagine your grandchildren hearing your voice decades from now, guiding them with stories and lessons. That’s powerful.
Don’t wait for the reading of the will. Host a family meeting. Sit down and explain the plan. Let people ask questions. Be open. Just like a business has a team meeting, your family deserves the same clarity and communication.
This is what I call wisdom weaving. The idea of taking lessons from your life and stitching them into your family’s future. Wisdom isn’t just learned through mistakes. It can be inherited, if someone takes the time to pass it on.
You’ve heard the saying, “If I knew then what I know now…” That’s what you’re doing. You’re giving your family a head start. A cheat code. A deeper inheritance.
Final Thoughts: Wisdom Is the Real Inheritance
In the end, it’s not about the size of the bank account. It’s about what your legacy means.
Estate planning is how you turn success into significance. It’s how you pass on who you are, not just what you have. It’s how you make sure your family doesn’t just survive… they thrive.
And you don’t have to be ultra-wealthy to do this. You just have to be intentional.
Start with a conversation. Build a plan. Choose the right tools. And pass on more than just assets. Pass on your experience. Your beliefs. Your heart.
Because at the end of the day, money can disappear, but wisdom multiplies.
Until next time,
Dre Griggs, CFP®, MSAE
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