The transfer of wealth across generations presents both opportunities and challenges. While many families want to ensure their heirs benefit from their financial success, wealth can quickly diminish without proper planning. To gain expert insights into this complex process, I spoke with Matt Tabler, a seasoned financial professional who has spent years guiding families through wealth preservation and transfer strategies.
The Importance of Thoughtful Planning
“We all came into this business with the goal of helping people make good choices with their money,” says Matt. “Our work is deeply personal—it’s about more than just investments; it’s about helping families navigate financial decisions so they can focus on living a more fulfilled life.”
To help families plan effectively, Matt shared eight key considerations for managing generational wealth.
1. Prioritize Estate Planning
“Estate planning is more than just writing a will,” Matt explains. “It’s about ensuring that assets are transferred smoothly and in alignment with your long-term goals.” He recommends establishing clear directives, including power of attorney and healthcare proxies, to protect wealth during periods of incapacity. High-net-worth individuals may also consider trusts to provide additional control over assets.
2. Consider Life Insurance
Life insurance can be a valuable tool in wealth transfer, helping to provide liquidity for estate taxes or unexpected expenses. “We often advise families to use life insurance strategically—it can ensure that beneficiaries receive financial support without disruption,”
3. Plan for Taxes
One of the biggest concerns in generational wealth transfer is taxation. “Many families don’t realize how much taxes can impact their estate,” says Matt. “Having a proactive tax strategy—whether through gifting, charitable giving, or structuring trusts—can help minimize tax burdens and preserve more wealth for the next generation.”
4. Diversify Investments
“A common mistake is concentrating too much wealth in one area, like a family business or real estate,” Matt warns. “Diversification helps manage risk and provides stability across different market cycles.” He advises clients to work with financial professionals to develop a well-balanced portfolio that aligns with their risk tolerance and long-term goals.
5. Foster Financial Education and Mentorship
Managing wealth effectively requires financial literacy. “One of the most rewarding parts of my job is helping clients educate their children and grandchildren about financial responsibility,” Matt shares. He encourages families to introduce younger generations to budgeting, investing, and wealth management principles early on.
6. Establish Philanthropic Goals
Many high-net-worth families integrate philanthropy into their wealth planning. Beyond tax benefits, philanthropy allows families to pass down their values. He advises clients to develop a structured giving plan, whether through donor-advised funds, private foundations, or legacy giving strategies.
7. Maintain Open Communication
“Miscommunication is one of the biggest risks to generational wealth,” Matt points out. Regular family meetings help align expectations and clarify roles, such as power of attorney and trustees. “Being transparent about your wishes and involving your heirs in financial discussions can prevent conflicts and ensure a smoother transition.”
8. Engage Professional Guidance
Wealth transfer strategies require expertise in multiple areas, from tax law to investment management. “No single person has all the answers,” Matt says. “That’s why it’s critical to have a team of professionals—financial advisors, tax specialists, and estate attorneys—who can work together to develop a strategy tailored to your family’s needs.”
Looking Ahead: A Legacy Beyond Money
For Matt, financial planning isn’t just about numbers, it’s about helping families achieve security, stability, and fulfillment. “True wealth goes beyond financial assets,” he reflects. “It’s about living a meaningful life, pursuing passions, and ensuring that future generations have the confidence and resources to do the same.”