You've worked hard to be where you are today to ensure you can provide a more comfortable life for your loved ones. Even with the best intentions, unpredictability sets in and may affect the state of your income, business, health, and even relationships. That’s why regardless of your age and financial status, it makes sense to start planning on how to protect your assets and preserve your wealth for your family, especially when unexpected events happen.
This is also where the concept of generational wealth comes in, referring to a person’s financial assets that are passed down from one generation to the next. Here are three ways you can secure generational wealth:
- Educate your heirs on managing your wealth and business
When we talk about wealth transfer, it’s not simply a question of how seamless or fast the transfer is, but also about how the wealth can be grown, cultivated, and sustained by your heirs.
Consider passing down not only your financial assets, but also the values and philosophies that helped you grow those assets in the first place. Without these foundations, your family could lose what you worked hard for many years. Forming one’s values and beliefs takes years, so the sooner you teach your children these, the better.
Also, equip your family with financial literacy to help manage your wealth effectively. Your family, for example, could join short courses and training programs, or attend sessions of wealth experts, to help them build a good understanding of different financial topics.
Your wealth has a bigger narrative and sharing the story behind it is a powerful means of transferring values. Have those family conversations create healthy connections and lead a life consistent with what you teach. When the right time comes, you’ll have the peace of mind that your wealth will be in capable caring hands.
- Build a financial plan for your health needs and emergencies
While you may do everything you can to live healthily, unforeseen health emergencies could be significantly carved out from your wealth. Mounting hospital expenses could dry up your savings and liquidity sources, which could create financial strain on your loved ones and put their future at risk.
This is why having a comprehensive health plan is important. It will allow you to continue leading a healthy life while ensuring you're adequately covered and can get the best healthcare when you need it.
- Prepare your inheritance plan as early as possible
Nobody knows what the future holds. Because of this, lay out a detailed plan for your wealth and estate while you are still strong and able. This will help ensure a smooth transition of your assets to your rightful heirs who will properly preserve, manage, and distribute your wealth. Doing so avoids penalties and unexpected expenses, as well as potential legal issues that may arise after you're gone. More importantly, careful estate planning will give you peace of mind knowing you'll be able to take care of your family whatever happens to you, and the legacy you’ve built will continue to the next generation.
With this in mind, you may want to consider AXA Philippines’ inheritance planning solution, Legacy Steward. This insurance product allows you to seamlessly pass on your pamana to your heirs—properly, peacefully, and according to your wishes.
With Legacy Steward, you can secure your loved ones with a guaranteed death benefit of up to 250% of the premium you paid, depending on your age when you get the plan. This provides your heirs with ready liquidity that they can use to cover estate taxes, wealth transfer costs, and other expenses that may arise upon your passing, including funeral and burial expenses.
Since it is tax exempt provided your beneficiaries are irrevocable or your revocable beneficiaries remain unchanged throughout the policy, more of your pamana will go directly to your heirs exactly as you intend.
The whole inheritance planning journey can feel overwhelming, but you don’t have to go through it by yourself. With Legacy Steward, you also gain support from certified advisors trained in trust and inheritance matters, along with the option to get the services of a partner law firm.
By combining a comprehensive health plan, smart estate planning, and well-prepared and educated heirs, rest assured that your legacy will remain intact whatever the future holds. These are important investments you need to make together with your other financial decisions. Because whatever you do today will impact the life your loved ones will have tomorrow.
Know you can game plan your way towards seamlessly passing on your hard-earned wealth to your family. Get started by talking to an AXA financial advisor.
