What is a Generational Estate?

For most people, a generational estate plan is an opportunity to create a lasting legacy. The financial legacy, which usually skips a generation, also creates an emotional legacy. Many people have little or no memory of their grandparents by the time they mature into adults.

Generational estates, which normally contain real property, have been important for many families for many decades. A generational estate is an important tool in the toolbox of a St. Petersburg estate planning lawyer, because as mentioned, these estate plans have significant financial and emotional benefits. Creating a lasting legacy is an important priority for many people, and a generational estate could be the ideal solution in these situations.

Core Concept

Continuity through time is the unique and defining feature of a generational estate. Unlike properties that are bought and sold within a single generation, a generational estate usually  remains within a family for many decades or even centuries.

The ultimate goal is preservation of both the material value of the estate and the symbolic value it holds for the family. These estates usually include giant and tiny pieces of land, such as farmland, historic homes, ranches, vineyards, or even private islands.

Historical Context

Once upon a time, generational estates were the exclusive province of aristocratic European families, because land ownership was synonymous with social status and political power. Estates were often tied to titles and privileges, such as in the case of English manors or French châteaux. These properties included legal structures, like trusts or entails, which included obstacles to sales and divisions, ensuring their preservation for future heirs.

Today, for a St. Petersburg estate planning lawyer, although legal systems have changed significantly, the concept of maintaining family assets across generations remains strong among wealthy families and landowners worldwide. People of much more modest means also have generational estates, to keep treasured land in the family.

Legal Options

To ensure the estate remains intact for future generations, many families use legal and financial tools such as family trusts, foundations, or limited liability companies (LLCs). These structures help minimize estate taxes, protect assets from creditors, and establish rules for property management and inheritance.

The dynasty trust is an even better tool. It allows assets to be passed down without incurring estate taxes for several generations. Conservation easements, which provide tax benefits in exchange for committing to preserve land from development, have basically the same effect.

Cultural and Emotional Significance

Generational estates have practical value. Many families gather at the estate for holidays, weddings, or reunions.

Beware that maintaining such a property includes challenges such as high maintenance costs, conflicts over inheritance, and shifting family dynamics. For example, some heirs may not want the responsibility, while others may see the estate as a burden rather than a blessing.

On a side note, generational estates continue to evolve. Many families now include non-real estate, such as art collections and investment portfolios, in generational trusts. The emphasis remains the same. New and traditional generational trusts preserve wealth, heritage, and values across generations.

Contact a Thorough Manatee County Lawyer

The essential estate planning process isn’t as complicated as many people believe it is. For a confidential consultation with an experienced estate planning lawyer in Lakewood Ranch, contact Drude Tomori Law. After hours visits are available.

Source:

forbes.com/sites/forbesbooksauthors/2021/08/25/your-legacy-how-to-create-a-multigenerational-estate-plan/