When an estate is set up using trusts and other vehicles that pass down from generation to generation, then there is something wonderful about how that estate can evolve. An estate can start out with a modest sum, and then be grown into great wealth over generations. Many families take great pride in the way their family has nurtured the family estate, and there are also families who embrace the idea that things can change from generation to generation.
The Distribution Of Wealth
As you get three or four generations into a trust or an estate in general, the values of the estate trustees can start to change. Instead of feeling it necessary to have four homes within a single trust, future generations may sell one or two homes and give the proceeds to charity.
The other option is to continue to find creative ways to distribute wealth to living members of the trust while reducing the tax implications. Trusts and estates are not just put in place to handle wealth when a family member passes on. They are also used to help living family members to achieve their goals and find financial happiness as well.
The Cohesion Of The Family
Some people assume that money is a strong tie that binds a family together, but for many families the growth of a trust is about much more than money. Many families find that they have substantial means because of the decisions each generation has made in maintaining a trust or estate. The family business of monitoring and administering the estate becomes a central focus of the family that offers cohesion.
A Family Identity
To many families, the success of the family trust and estate is the identity they hang their hats on. Every decision made by each generation is scrutinized by the entire family and a move is not made unless it is considered good for the group.
Each generation wants to make significant changes to the family estate to put their own stamp on it, but the general feeling each successive generation is to make positive moves that enhance the family identity. An estate and a trust is more than just money. It is all of the property and charitable actions of a family condensed into one legal entity. A trust is the identity of a family, and it is treasured from one generation to the next.
A strong trust allows a family to make financial decisions that can affect all of the family’s holdings and interests. As a trust grows, so does the financial security of the entire family. As the trust starts to encompass more holdings and property, it offers the family the chance to take care of each member in ways that most other families cannot.
An estate is one of the most versatile ways that a family can protect its wealth, and preserve its legacy. There are many different things a family can do with an estate that include alter the estate to mirror the changing times the family lives in. If you are interested in creating something that future generations of your family will use as a source of family pride, then consider putting together an estate that your family can grow and nurture for years to come.