Passing wealth to the next generation involves more than estate documents and tax strategies. It requires intentional conversations about values, readiness, and stewardship. Yet 70% of wealth transitions fail, with 60% of failures stemming from breakdowns in family communication and trust
Estate planning is the foundation of legacy planning. It includes essential legal tools like wills, trusts, and beneficiary designations, as well as incapacity planning. Yet despite its importance, only 33% of Americans have an estate plan in place. Without these structures, even the most thoughtful legacy intentions can be derailed by probate delays, tax inefficiencies, or family disputes.
For a deeper look at estate planning fundamentals, read Understanding Estate Planning Essentials.
At Fairvoy Private Wealth, we help families navigate these critical transitions. Here are five essential questions every family should explore—and why working with a financial advisor makes all the difference.
1. What values do we want our wealth to reflect, and how do we want it to impact future generations?
Wealth means different things to different family members. Without alignment on core values and long-term goals, even the best financial plan can unravel. Do you want your wealth to provide security, enable entrepreneurship, support education, or drive philanthropic impact?
Why an advisor helps: Advisors facilitate these emotionally charged conversations and translate your values into actionable financial strategies—whether that’s education trusts, incentive structures, or charitable giving vehicles that reflect your family’s principles.
2. Who is best positioned to lead, and are they ready?
Whether you’re transitioning a business or managing a portfolio, succession planning is critical. Only 30% of family businesses survive into the second generation, often due to poor succession planning. Leadership requires more than family ties—it demands capability, commitment, and alignment with family values.
Why an advisor helps: Advisors establish objective criteria for succession, structure governance arrangements that maintain family harmony, and connect you with specialists who can address complex transition challenges.
3. How do we prepare the next generation to be responsible stewards of wealth?
25% of wealth transfer failures occur because heirs aren’t adequately prepared. Financial literacy, emotional maturity, and understanding responsibilities are essential. Yet only 39% of wealth givers provide guidance to heirs on managing their inheritance.
Why an advisor helps: Advisors provide tailored financial education, mentor heirs through increasingly complex decisions, and create structures that allow heirs to practice stewardship with guidance. They continue supporting the next generation after the transition, ensuring stability and continuity.
4. What structures and plans are in place to support a smooth transition?
Good intentions aren’t enough without proper legal, financial, and governance frameworks. A comprehensive plan should address estate documents, tax-efficient transfer strategies, adequate liquidity, governance frameworks, and ongoing financial education for heirs.
A well-crafted estate plan is the starting point. Wills and trusts help ensure assets are distributed according to your wishes, while beneficiary designations and powers of attorney protect against unexpected incapacity. Trusts, in particular, can help avoid probate and maintain privacy. But these tools must be coordinated with your broader financial and legacy goals.
Why an advisor helps: Advisors coordinate with your estate attorney, tax professionals, and other specialists to create an integrated plan. They identify potential problems before they occur and ensure your plan adapts as circumstances change—new tax laws, family situations, or economic conditions all require adjustments.
5. Are we emotionally prepared to let go, and have we had the necessary conversations?
The hardest part of legacy planning is emotional. Many struggle to step back, while heirs may feel overwhelmed by expectations. Two-thirds of wealth givers admit to procrastinating family wealth-transfer conversations—yet these uncomfortable discussions are essential for success.
Why an advisor helps: Advisors create a structured, safe environment for difficult conversations. Their neutral presence reduces defensiveness and keeps discussions solution-focused. They help manage expectations and provide realistic assessments of what wealth can and can’t do.
Why Working with a Financial Advisor is Essential
Legacy planning touches every aspect of your family’s financial life. A qualified advisor provides the expertise, objectivity, coordination, and continuity needed to navigate these complex transitions. At Fairvoy Private Wealth, we understand that your legacy is about more than money; it’s about the values, opportunities, and security you want to provide for those you love.
Ready to start the conversation? Contact Fairvoy Private Wealth today to create a legacy plan that honors your past, serves your present, and secures your family’s future.