Latest news with #generationalwealth
CTV News
14 hours ago
- Business
- CTV News
Young adults working to break home ownership expectations
Younger generations are trying to get involved in the real estate industry and own a home. CTV Windsor's Bob Bellacicco reports. Young adults are working to break the stigma about not owning homes at a young age. Jacob Boow has heard his generation is facing an uphill battle when it comes to home ownership but doesn't agree. 'You got to get out of that mindset,' said the 22-year-old. 'You gotta work out a plan.' Boow got into the trades in high school and started making money. At 20, he bought his first house. 'Got that house and I fixed it up. I lived in it for a little over a year, and then I flipped that house,' he said. 'And then once I flipped that house, I was able to purchase a better house for me to be more comfortable in.' He plans to build equity in that house. 'Now I'm working towards saving up a little bit of money again, so then I can get another house and then get into some passive income so that I can grow what I desire, which would be having generational wealth,' said Boow, Realtor Rhys Trenhaile said Boow is not alone with more young people getting involved in the real estate market. 'It's a new group. It's a new vibe,' said Trenhaile, who sees some young investors adding an extra unit in the basement to rent out. 'They're getting it done, and they're finding different ways of getting it done, in a way that I didn't see the youth attacking this and getting home ownership, say, five years ago.' The number of monthly listings is up roughly 10 per cent over this time last year. There are currently about 2,600 listings in Windsor-Essex. Trenhaile said the number is going up as more baby boomers downsize. He pointed out wages have increased, housing prices have flat-lined, and interest rates have gone down opening the door to young upstarts. 'That wasn't happening two months ago so now they're getting really busy again,' Trenhaile remarked. 'And to us that's the lead measure as real estate agents, that's a lead measure of about 30 to 60 days to know that we're going to be busy.'
Yahoo
2 days ago
- Business
- Yahoo
What is generational wealth, and how do you build it?
Leaving a financial legacy to your kids can give them a significant leg up in life. Data from the Congressional Budget Office shows that 28% of families in the top third of the income distribution received an inheritance, compared to only 17% of those in the bottom third. Building generational wealth may sound like something reserved for the ultra-rich. But the truth is, generational wealth may be more accessible than you think. Whether you want to help your kids pay for college, give them money for their first house, or leave them the family business when you retire, generational wealth can help your children get off on the right financial foot. Passing down generational wealth may not require an enormous net worth, but it does involve strategic planning. Read on to learn more about generational wealth and how to build it. This embedded content is not available in your region. Generational wealth includes assets, such as cash, property, investments, and businesses, that are passed down from one generation to the next. You can leave generational wealth in the form of an inheritance — for example, investments or property — transferring the wealth when you die. But you can also build and pass on generational wealth during your life. For example, parents may build generational wealth by paying for their children's higher education, helping them purchase a home, or giving them a financial gift when they get married. Generational wealth is important because it gives younger generations a financial head start. In extreme circumstances, it can make the difference between living debt-free, owning a home, or simply having a financial safety net — or not. Read more: What happens to a bank account when somebody dies? If building generational wealth is one of your financial goals, you'll need to establish your own financial foundation first. This can mean paying off high-interest debt, creating an emergency fund, and saving for retirement. You may also want to save for goals of your own, such as traveling, buying a home, or starting a business. Once you've got these basics covered, you can shift your focus to the next generation. The following strategies can help you build generational wealth over the decades. Investing is a key wealth-building strategy for reaching any long-term goal, including building generational wealth. Investing allows you to buy assets, such as stocks, bonds, mutual funds, and real estate, that will generate income or grow in value over time. Investing typically allows you to build meaningful wealth much faster than you would by saving money in a bank account. A financial advisor can help you create an investment strategy tailored to your goals and circumstances, but a few tips can help almost anyone: Start investing as early as possible to maximize the power of compound interest. When possible, invest in tax-advantaged accounts. Minimize investment fees, which cut into your returns. Diversify your investment portfolio to lower your risk of major financial losses. According to the Urban Institute, homeownership is the primary wealth-building tool in the U.S., especially for Black families. This makes it a common goal for those who want to pass on generational wealth. Real estate typically appreciates over time, which can make it an especially valuable asset to pass down to your children. Whether you want to buy a primary residence, invest in rental properties, or both, owning real estate can be a useful tool in building generational wealth. Starting a business is one way to grow your own income exponentially, but it's also a valuable generational wealth-building tool. According to the U.S. Small Business Administration (SBA), business equity was the second-largest share of nonfinancial assets in 2019 (after homeownership). Data from the SBA also shows that, on average, self-employed people are wealthier than non-self-employed people. Starting a business has the potential to help you improve your cash flow and build a wealth-building entity to pass down to your kids, creating a major financial advantage for your family. Not only that, but the sale of a business can generate significant income for future generations. Like generational wealth, you may associate estate planning with high-net-worth individuals. But it's a key financial step for anyone who wants to control what happens to their assets after they pass away. Estate planning helps you transfer your wealth according to your wishes after you die. When done well, it helps your heirs minimize unnecessary taxes, other financial losses, and time spent in probate court. To create an estate plan, start by taking inventory of your assets and choosing beneficiaries for each. You'll then need to create a will, which makes up the core of your estate plan. While you can do this yourself, it may be worth meeting with a financial advisor or estate planning attorney to make sure your plan is legally sound. After creating an estate plan, review it every year to make any necessary updates to your assets, beneficiaries, or wishes. Read more: What is wealth management, and is it right for you? If your goal is to make your wealth last for generations to come, financial education should be a focus within your family. Teaching your kids the basic skills of money management, budgeting, and saving money can help them build a foundation of financial responsibility. And going a step further by teaching them how to invest, start a business, or pass down their money can help them continue to build and share their wealth as they age.
Economy ME
3 days ago
- Business
- Economy ME
UBS Global Family Office Report 2025: Key investment trends and strategic shifts among the world's wealthiest families
UBS has released its Global Family Office Report 2025, offering the most comprehensive analysis to date of the investment strategies, concerns, and evolving priorities of the world's wealthiest families. Drawing insights from 317 single family offices across more than 30 markets, the report covers a broad cross-section of global capital and influence, with participating families averaging a net worth of $2.7 billion and managing an average of $1.1 billion in assets. Conducted between January 22 and April 4, 2025, the report offers timely insights into how this elite group is navigating a period of significant economic and geopolitical uncertainty, while also adapting to long-term structural changes in global markets. European family offices outside Switzerland balance traditional and alternative assets equally, with 51 percent in equities and bonds, and 49 percent in private equity and real estate Read: Middle East families to see $1 trillion transfer of generational wealth by 2030: Report Top concerns for 2025: Geopolitical risk dominate The most urgent concern among family offices globally is the potential for a global trade war, cited by 70 percent of respondents as a primary threat to achieving their financial objectives over the next 12 months. This reflects heightened tensions among major economies and increased uncertainty surrounding international trade flows. Closely following this, 52 percent of family offices identified major geopolitical conflict as a pressing concern. As the planning horizon extends to the next five years, this concern deepens: 61 percent foresee geopolitical conflict as a top risk, and 53 percent are worried about a global recession, likely triggered by serious trade disputes and supply chain disruptions. Concerns over sovereign debt are also widespread, with 50 percent of respondents expressing alarm about a potential global debt crisis, highlighting widespread unease over high government borrowing and fiscal sustainability. Risk appetite and the search for stability Despite the turbulent outlook, 59 percent of family offices plan to maintain their current level of portfolio risk in 2025. However, nearly four in ten (38 percent) admit to facing challenges in identifying effective strategies to offset those risks. 29 percent also note that traditional 'safe haven' assets are no longer predictable, due to shifting correlations and macroeconomic instability. As a response, a significant percentage of family offices are turning toward more dynamic strategies to maintain diversification: 40 percent are increasing reliance on manager selection and active management 31 percent are investing more in hedge funds 27 percent are boosting allocations to illiquid assets 26 percent are favoring high-quality, short-duration fixed income 19 percent are using precious metals, with 21 percent planning to increase their allocation over the next five years Family offices are expected to play an even greater role in shaping the future of capital markets through strategic deployment of assets, stewardship, and innovation Asset allocation shifts: Focus on liquidity and developed markets In light of ongoing volatility and macroeconomic headwinds, family offices are realigning their strategic asset allocations, with a marked shift toward liquid markets and developed economies. Allocations to developed market equities increased to 26 percent in 2024, and among those planning changes, the average expected increase in 2025 is up to 29 percent. Looking ahead five years, 46 percent anticipate significantly or moderately increasing their exposure to developed market equities. Conversely, only 23 percent plan to increase allocations to developed market fixed income. Barriers to investing in emerging markets remain consistent: 56 percent cite geopolitical instability 55 percent highlight political uncertainty and sovereign risk 51 percent are concerned about legal uncertainty and regulatory frameworks 48 percent worry about currency devaluations and inflation Regional preferences: North America and Western Europe lead Geographically, family offices remain concentrated in developed Western markets. North America accounts for 53 percent of total allocations, followed by Western Europe at 26 percent. Together, these regions comprise nearly 80 percent of global portfolio weightings. Succession planning: A work in progress The world is in the midst of the largest intergenerational wealth transfer in history, yet only 53 percent of family offices have formal wealth succession plans in place. The remaining families cite various reasons for inaction: 29 percent believe there is still plenty of time to plan 21 percent have yet to decide how wealth will be divided 18 percent indicate a lack of time to properly address the issue For those with plans in place, the biggest challenge is ensuring tax efficiency (64 percent), followed by preparing the next generation to responsibly manage wealth (43 percent). Notably, only 26 percent involve the next generation in succession planning discussions from the outset. Geographically, family offices remain concentrated in developed Western markets Regional investment strategies: A global snapshot U.S.A. U.S. family offices maintain a heavy tilt toward alternative assets (54 percent), with 27 percent in private equity and 18 percent in real estate. Traditional asset classes make up 46 percent, led by equities (32 percent). Portfolios are predominantly U.S.-centric, with 86 percent of assets in North America. Switzerland Swiss portfolios are weighted toward traditional assets (56 percent), including 34 percent in equities and 13 percent in fixed income. Alternative assets represent 44 percent, with 16 percent in private equity and 12 percent in real estate. Regionally, Western Europe is the preferred destination (53 percent). Europe (Excluding Switzerland) European family offices outside Switzerland balance traditional and alternative assets equally, with 51 percent in equities and bonds, and 49 percent in private equity and real estate. Investment is concentrated in Western Europe (44 percent) and the U.S. (43 percent). Middle East Portfolios are split 50/50 between traditional and alternative asset classes, led by equities (27 percent) and private equity (25 percent). Regional allocation is tilted toward North America (55 percent), followed by Western Europe (21 percent). The latest UBS Global Family Office Report shows that family offices in the Middle East are embracing a diversified, forward-looking investment approach Balancing risk, opportunity, and legacy The 2025 UBS Global Family Office Report reveals a complex landscape for the world's wealthiest investors. While geopolitical and economic uncertainty dominate near-term concerns, family offices remain resilient and adaptive, making calculated shifts in asset allocation to preserve wealth and seize new growth opportunities. At the same time, many are grappling with the practicalities of intergenerational wealth transfer, emphasizing the need for long-term governance and proactive planning. As global conditions continue to evolve, family offices are expected to play an even greater role in shaping the future of capital markets through strategic deployment of assets, stewardship, and innovation. 'At a time of increased volatility, global recession fears and following a near unprecedented market selloff in early April, our latest report serves as a good reminder that family offices around the world are first and foremost pursuing a steady, long-term approach, as they focus on preserving wealth across the next generations,' Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, says. 'While the global macroeconomic and political environment continues to be marked by rapid changes and a high degree of uncertainty, this survey offers a glimpse of what we can expect over the coming five years. And most importantly, it provides a snapshot into the thinking of family offices around the world, their objectives, preferences and concerns,' Yves-Alain Sommerhalder, head of Global Wealth Management Solutions at UBS Global Wealth Management, explains. 'The latest UBS Global Family Office Report shows that family offices in the Middle East are embracing a diversified, forward-looking investment approach. While maintaining a relatively cautious exposure to global public equities, which is the lowest amongst all regions globally, they have embraced the benefits of alternative investments,' says Niels Zilkens, head Wealth Management Middle East at UBS Global Wealth Management. For more features, click here
Telegraph
04-06-2025
- Business
- Telegraph
‘Why should we have to downsize?': How boomers became the victim generation
We're looking for readers in different generations to talk about change within their families, such as a grandparent and grandchild's experiences of buying their first home. To get involved, email us at money@ Baby boomers have nothing to complain about. Bumper pensions. Free university education. House prices that have gone through the roof. Some of them even got to see The Beatles. This, at least, is the idea that's caught fire over the last 20 years, a period in which the debate about inequality in Britain has been reframed as a tug-of-war between generations. Boomers – the post-war cohort born between 1946 and 1965 – are blamed for hoarding wealth after winning the economic lottery. The losers are said to be Generation Z and millennials – born between 1980 and 2009 – who face sky-high mortgages and record-breaking rents, stagnating wages, massive student debt and outrageous student loan repayments, plus an unstable jobs market. There is a stigma attached to being a 'boomer', which has become shorthand for greedy, entitled and out of touch. Boomers have been accused of 'stealing their children's futures' by taking more than their fair share. Many believe they are unfairly victimised – pilloried for their wealth, and told to downsize out of their house to make way for younger families. But are they right to feel that way? 'Divisive and harmful tensions in society' A report by the House of Commons' Women and Equalities Committee in February confirmed what many older citizens have experienced first-hand. It found 'clear evidence' of ageist stereotyping across British media, with debates about intergenerational fairness tending to pit younger and older generations against each other in a 'perceived fight for limited resources'. The report went on: 'Older people are also frequently stereotyped as wealthy 'boomers' living comfortable lives in homes they own while younger generations struggle on low incomes, unable to afford to enter the housing market and struggling with high rents.' These 'narratives', the committee said, have fuelled 'divisive and harmful tensions in society'. This resentment doesn't come from nowhere. Recent figures released by the Office for National Statistics (ONS) showed that boomers are by far Britain's richest cohort. The average wealth of households aged 65 to 74 is £502,500 – more than 30 times that of Gen Zs aged 16 to 24, who typically have £15,200. Boomers' wealth is also 4.6 times greater than those aged 25 to 34, who are mainly younger millennials, with £109,800. This may not seem very surprising given older people have had a lifetime to accumulate savings, homes and pensions. 'There's an extremely strong life-cycle component to wealth,' says Simon Pittaway, a senior economist at The Resolution Foundation think tank. 'Most people start working lives with very little, build it up through peak working years then run it down in retirement. 'This has been the case for a long time. But we're seeing that profile getting starker.' The gap between the generations has grown since the financial crisis, which is often blamed on the boomers, who, the argument goes, were steering the ship at the time. A Resolution Foundation study found that between 2006-08 and 2018-20, median wealth among Britons in their 60s rose by 55pc in real terms, but median wealth for those in their 30s fell by 34pc. At the same time, the share of Britain's wealth held by the under-40s has fallen from 7.5pc in 2010 to 4pc today. It's statistics like these that mean boomers are often implored to give away their hoarded wealth, or downsize into smaller properties to make room for young families. 'Older people aren't hoarding – they're just afraid of change' John Griffiths, 80, insists his generation is in fact supremely generous – and shouldn't be discriminated against for having done well. 'It's a gimmick in the financial media to blame the boomers,' he says. 'It's not our fault property went up the way it did in the 60s and 70s. [The house price rises] drove most of us out of London.' Griffiths was born shortly after VE Day in May 1945, putting him right on the cusp of the boomer bracket. 'I tend to count myself as one of them,' he says. After training as a chemical engineer, he spent 20 years in the gas industry and the North Sea designing and building offshore oil facilities. He went on to found his own marine energy consultancy, advising clean energy firms and governments on how to best harness the power of waves and tides. He retired five years ago at the age of 75. His successful career has allowed him to pass on lump sums totalling £500,000 to his three children, who are in their 40s and 50s and have children themselves. A large part of his financial security derives from property wealth. The house in Wimbledon that he bought with his wife Valerie in 2006 for £545,000 is now worth £1.3m. Homeowners aged 60 and over hold more than half of the nation's owner-occupied housing wealth, totalling an estimated £2.89 trillion, according to estate agents Savills. Two thirds (67pc) of homeowners aged 65 and over have two or more spare rooms in their property, even as a shortage of affordable housing prevents young families from buying their first home. The Tony Blair Institute think tank has called for larger properties to be taxed more to encourage owners to downsize. But Griffiths believes pressuring older people to vacate their homes is unfair. 'It doesn't sit well with me. I don't think older people are hoarding. They stay where they are because they're afraid of change. 'Many don't have supportive families to help them, and are stuck where they are.' The rise of boomer bashing Dr Jennie Bristow, a reader in sociology at Canterbury Christ Church University, traces boomer bashing back to the collapse of traditional political frameworks at the end of the 20th century. 'From the 1990s, we started trying to explain societal problems that went beyond Left and Right,' she says. 'It's still playing out now in the culture wars.' It was a time when demographic anxieties were spreading across the Western world. Ageing populations mean relatively fewer younger workers supporting the swelling ranks of elderly pensioners through the welfare system. Old-versus-young became the salient faultline. 'The narrative that emerged was that the 2008 financial crisis was due to policy decisions, and also cultural individualism, that was personified by the baby boomer generation. These are the people who are hoarding wealth and will benefit from big pensions. 'For the Right, it's an argument for restructuring the welfare state. And for the Left, it's used as a reason for more welfare and less Thatcherite individualism. It brought those two opposites together.' Bristow believes anti-boomer sentiment peaked in 2010, the year that David Willetts, a former Tory MP turned public intellectual, published an influential book called 'The Pinch: How the Baby Boomers Stole Their Children's Future'. She says the tendency to blame the boomers has turned into a 'frenzy' that ignores inequalities within generational cohorts. 'The boomers associated with the 1960s generation, born straight after the war, did reap a lot of the benefits of that time. There were a lot of possibilities, economic opportunities, and they ended up with good pensions. But not everyone was part of this. It was actually quite a narrow section of society. 'Younger boomers came of age in the far more pessimistic 1970s. Yes, people got grants for university, but only 7pc of the cohort went.' 'I get sick of boomers blaming young people' Richard Merry was born in 1955, putting him right in the middle of the boomer generation. After leaving school at 16, Merry joined the armed forces, eventually becoming a member of a special army unit that sent him all over the world during a 50-year career. He has worked hard to retire three years ago in relative comfort, but acknowledges that younger generations have a tougher ride in many ways. 'People just don't earn that sort of money any more,' the 69-year-old says. 'I get a little bit sick with the boomers saying that it's young people's own fault for not getting on the property ladder.' Merry bought a three-bedroom semi-detached house in south-east London for £77,000 in 1990. It is now worth over £1m. It was easily affordable on his salary of around £32,000, equivalent to £80,000 today. 'My children, both in their 30s, work incredibly hard and lead tough lives. You simply can't compare property prices and deposits now to what they were.' But it's not all plain sailing for his generation. Care costs, for instance, are 'crucifying' the boomers, he says. His own mother's old age care cost £320,000 over three years – money that would have gone to Merry and his sister. They had to sell their mother's home to pay for it. 'All the talk is that boomers are hoarding wealth, but we're going to be skinned alive when it comes to care costs.' On tax and earnings too, it hasn't been the easiest of rides. 'People at the bottom benefitted from increases in the minimum wage, but middle earners like me have had the stuffing kicked out of them.' Boomers have 'rigged the game in their favour' On the contrary, Angus Hanton, of the Intergenerational Foundation think tank, believes boomers have 'heavily rigged the game in their favour' over decades by repeatedly voting in governments that have given them a good deal. 'Boomers have fought tooth and nail to protect their interests,' he says. 'We can see that most starkly in how the tax system is structured – what's taxed heavily is earned income. Younger working people pay income tax at a high rate from a low level of earnings, plus National Insurance and student loan repayments, which is basically a tax. 'But unearned income is taxed very lightly – money in Isas and Sipps, and capital gains tax is half the rate of income tax.' Hanton, a boomer himself, rejects the idea that the focus on competing age groups squeezes out other factors from the conversation – like class, race or gender. 'Generational inequality is a really important lens and we shouldn't refuse to look through it just because there are other lenses available.' Evidence suggests that many younger people are looking at the world – and their claim on the material wealth of their elders – through this lens. Research by Moneyfarm, an investment platform, found that two in five millennials fear their parents were frittering away 'their' inheritance, while a fifth said their 'spendthrift' parents were selfish for failing to consider their children or grandchildren's economic wellbeing. Meanwhile, 61pc of Gen Z feel they have to work harder than their parents did, according to YouGov polling. The reality is that many young people will benefit indirectly from the economic success of their parents and grandparents. A much-cited report from estate agents Knight Frank found that millennials are set to become the 'richest generation in history', thanks to the steep rise in the value of property assets accumulated by the generations before them which will be passed on when they die. Yet Bristow points out that even if millennials as a group are in line for a huge windfall, the only ones who will actually benefit are those with well-off parents who rode the property wave. Boomers, too, all tend to be tarred with the same brush. 'You can look at it two ways, generationally,' she says. 'Not all older people are wealthy. So saying boomers have stolen their children's future doesn't stack up.'
Forbes
04-06-2025
- Business
- Forbes
Building Generational Wealth: How To Ensure Your Assets Last
Man taking photo of happy multi-generation family with smartphone. The United States is in the midst of one of the largest wealth transfers in history. With the Great Wealth Transfer underway, the latest figures from Cerulli (as of December 2024) show that $124 trillion will transfer through 2048, with $105 trillion going to heirs. Estate planning is no longer just for the wealthy—it's something everyone with assets should consider. According to Jen Galvagna, Head of Trust, Estates and Tax at Bank of America Private Bank, and John Nebeker, a financial advisor and author of The Family Bank: The Key to Generational Wealth, having a clear plan in place is crucial for anyone looking to pass on wealth thoughtfully. "When I start a class, I always ask, 'What happens to your assets if you die without a will or estate plan?' Almost always, someone answers, 'The state takes your property,'" Galvagna says. "But that's not true. The state simply decides where your assets go, and it may not be where you want them." Without a proper estate plan, your assets will be distributed according to your state's intestacy laws, which may not reflect your wishes. Galvagna points to the case of musical legend Prince, who died without a will and left his estate tangled in a years-long legal battle. "When you don't plan, others will decide where your assets go," she notes. "In Prince's case, his music and legacy were at risk, and ultimately, the distribution wasn't what he likely would have wanted." Failing to create an estate plan can lead to pitfalls in asset distribution, guardianship, and financial decision-making. For parents, one of the most important decisions is ensuring that their children, especially minors, are taken care of. Galvagna suggests that an estate plan should include asset distribution, designate a guardian for your children, and provide instructions in case you become incapacitated. "If you have minor children, you need to decide who will care for them if something happens to you," Galvagna says. "And just as important, you need a strategy in place for what happens if you're unable to make financial decisions for yourself." As the population ages, the need for estate planning has never been more urgent. Without a plan, the risks only increase as people age. One of the biggest misconceptions about estate planning is that it's only for the ultra-wealthy. Galvagna debunks this myth, saying that anyone with assets, no matter how small, should have a plan. "It's a common myth that trusts are only for the ultra-high-net-worth," she says. "Anyone with assets should have a say in how those assets are distributed. Trusts provide a way to control that distribution over time. It's not just about money—it's about your legacy." In fact, trusts allow individuals to set up long-term strategies for distributing their assets. A trust ensures that beneficiaries are taken care of for generations instead of handing them a lump sum that could quickly be spent. One strategy for preserving wealth across generations is the "Family Bank" concept, popularized by financial advisor John Nebeker. In his book The Family Bank: The Key to Generational Wealth, Nebeker explains how some of America's wealthiest families, including the Rockefellers, have used this model to sustain and grow their wealth. 'The Family Bank is about creating opportunity, not entitlement,' Nebeker says. 'Families replace gifts with loans, and entitlements with opportunities.' Instead of leaving a lump sum inheritance, a Family Bank provides structured loans to heirs for significant life milestones—like education, buying a home, or starting a business. This approach encourages responsibility, and allows families to retain control over the assets, ensuring wealth is used wisely and not squandered. For families looking to build generational wealth, the Family Bank offers a structured way to ensure assets are used responsibly, preserving long-term financial success. Family conflict is one of the biggest challenges in estate planning. Galvagna recommends open and transparent conversations with family members to avoid surprises and misunderstandings after your passing. "There's nothing worse than family fighting over who gets what," she says. "Be upfront with your kids and even involve them in the decision-making process. For instance, if you have tangible property, like a family heirloom, ask your children what they'd like to inherit." She shares an example of a family with four children and valuable heirlooms. By having each child choose their top three items, the parents were able to distribute the property fairly without any conflict. Parents with wealth often worry that their children will squander their inheritance. Galvagna explains that trusts can set restrictions on how and when beneficiaries can access funds, preventing misuse or financial irresponsibility. "Trusts are a powerful tool to protect assets," she says. "If you leave an inheritance outright, it becomes subject to divorce settlements or creditors. But with a trust, you can control how and when the assets are distributed, even for health, education, and maintenance." For parents concerned about their children's ability to manage large sums of money, Galvagna suggests creating specific conditions for accessing trust funds. For example, a child may only be able to use their inheritance for buying a home or starting a business rather than for frivolous spending. While many people think estate planning is only for the elderly or the ultra-rich, Galvagna argues that it's something everyone should do—especially if they have children or significant assets. Whether it's a 401(k), a house, or savings, planning ahead ensures your wishes are honored and your legacy is preserved. "Estate planning isn't about death—it's about ensuring your family is protected, no matter what happens," she says. "Whether you're in your 40s or 70s, it's never too early to start." By taking the right steps and working with a professional advisor, you can create a plan that ensures your wealth is passed on as intended—without unnecessary legal battles or family disputes.
