Transferring wealth over generations well doesn’t just happen. Estate planning is for everyone, not just the “wealthy.” Having a clear plan in place is the only way to ensure that property, personal possessions and investments are inherited by the people you love. This is especially important if your goal is to help your family build wealth over generations. The United States is currently in the midst of what many have called the greatest wealth transfer in history, as Baby Boomers transfer trillions of dollars of their hard-earned wealth to the next generation.
Without a trust or a last will and testament, the state decides who should receive property based on the intestacy laws, which may or may not reflect your wishes. It can take years to untangle an intestate estate, not to mention lost opportunities to avoid federal and Maryland taxes. This can include creating a gifting plan now to reduce those taxes.
For parents, the most important decision in crafting a will is deciding who will be their children’s guardian and naming someone to take care of their finances in case of incapacity. Parents can make significant improvements over how Maryland’s intestate laws would treat assets for their children with simple advanced planning.
The myth that trusts are only for ultra-wealthy individuals is starting to fade, as more people understand the advantages trusts give in a wide variety of situations. Trusts can avoid wasting resources transferring assets through the probate system. Trusts provide a way to control distribution over time, building a legacy and protecting assets from creditors as well as spendthrifts.
Family conflict is recognized as one of the most significant challenges to creating a successful estate plan. Open and honest conversations about the parents’ vision for their inheritance and understanding the reasons behind their decisions can help avoid conflict after they pass away. For some families, this is an ongoing discussion, while for others, it may be helpful to have the entire family meet with an estate planning attorney in an office setting.
Wealthy parents often worry about children squandering their inheritance. Using trusts can set restrictions on how inheritances are spent and control their distribution. Another reason to consider trusts for an estate plan: money kept in a trust generally cannot be attached in case of a divorce or debt. Assets can be directed to be spent only on health, education and maintenance.
Estate planning isn’t just about death. It’s also about protecting you while you’re living. An estate planning attorney from the Downs Law Firm will help create Power of Attorney documents so you can decide who you want to take over your finances if you become incapacitated. Healthcare documents allow you to name a person to be involved with your medical care, making decisions and talking with doctors. Without healthcare documents like a Healthcare Proxy, HIPAA Release Form and Living Will, your family won’t be able to talk with doctors, make crucial medical decisions, or know what you would have wanted if you weren’t able to speak to convey your wishes.
A consultation with an experienced estate planning attorney is the first step in creating a plan to establish a legacy. It takes some time, so start by calling our experienced team to make an appointment. Your future self and your family will be grateful.
Reference: Forbes (June 3, 2025) “Building Generational Wealth: How To Ensure Your Assets Last”