A How-To on Generational Wealth & Financial Independence through a Will & Trust
Never in my wildest dream did I foresee what life must be like to have or be a trust fund baby. Don’t get me wrong, I could remember when I was younger desiring to be wealthy – someway, somehow – but no way I understood the magnitude of wealth regarding asset protection and generational wealth. In fact, I don’t ever recall anyone around me ever talking about such topics. It wasn’t until I was in college that I heard the concept of “a trust fund baby” and my mind was blown. As if, you mean to tell me, you already have money set up for you to do whatever you choose to do with it. Sounded amazing. And then I quickly dismissed it because that just wasn’t my life and wasn’t in my peripheral. But, when I found out I was pregnant and was bringing a human in to this earth, my mind (like most first time soon to be parents) started racing a million miles per minute with all types of thoughts. For me, some of the top thoughts were how do I raise a black child? How do I ensure my child is set up for success in life? How do I make sure my child doesn’t have to worry ever about money?
From Financial Ruin to Bounce Back & Protect
Fast forward to my journey in motherhood, around the time my daughter was 3-5 years old, I became a corporate millionaire (🤯 – check out this link to hear more on the how) and started thinking about how do I keep this money for her. Fast forward a bit further, I got a divorce and my ex husband took more than half of that through divorce court litigations and procedures. And here I am, a single mom, with a black daughter whose future I am working to secure. I knew from the time I was told I was having a girl that I wanted her life to look and feel a certain way. I thought about the best schools, and the best extracurricular activities and how she would pay for college and what if she didn’t want to go to college and wanted to start a business or wanted to travel and do this whole gap year thing. All of the thoughts. All of the possibilities. My divorce shook me financially. I was on a good path up until that. And it got me wondering, how do I protect in the future what I’ve earned and worked for. And also, how do I ensure everything that I have is properly passed down to my daughter. Here is where we enter the era of a Will and Trust.
So education is critical. You don’t know what you don’t know. And I again had never thought about needing a will or a trust because like most people, in my 20s, I didn’t have anything to will or trust away (😂ðŸ¤ðŸ™ƒ). As I read more books and become more financially literate, I understand there are some pillars to wealth. You have to learn how to make money, how to grow money, and how to protect that money. I started reaching out to people in my circle that I knew to refer me to a lawyer that did Estate Planning which includes Will & Trusts. So, let me say this, I am obviously not an attorney and you should speak with one regarding your personal situation on why you need a Will, a Trust or both but I do believe everyone needs them. Whether you have kids or don’t, whether you have assets now or not, whether you’re where you want to be financially yet or not – in all of these situations, a Will & Trust will ensure all that you’re working for is handled properly. And might I add, there are some portions that cover Power of Attorney and Health decisions which is critical; having someone that could speak on my behalf and honor my wishes when I can’t speak up for myself makes me feel more at ease because while I pray nothing ever happens to me, I always want to plan and be prepared and again, protect my daughter and make the best decisions for her.
As I reached out to a few lawyers to gain some feedback on the process and what I needed to know, I found one that was patient with all of my many questions and that let me know this was the person I could feel safe in doing Estate Planning with. My one note here is find someone who will answer your questions but also provide you answers to things you did not even know you needed to ask; someone who is keen on educating you and not just taking your money. Now, this is an investment, it’s obviously not free. But this is a small price to pay in comparison to what will come after for many years down the line.
Now before you go picking up the phone immediately, here are two quick items you need to get prepared prior to creating your Will & Trust
- List your Assets. I mean every single thing you have that you want captured and is of value. Most people think houses and cars. But think furniture, think expensive pieces of jewelry, bags, shoes, etc. Think also of all your money accounts including retirement, stocks/bonds/MF, banking, life insurance etc. Be prepared so you understand what you are putting in your Trust.
- Plan your disbursement. However you are planning to disburse the items in your trust, think about what makes sense in terms of time of how you do so. I didn’t want my daughter to get a huge sum all at once because: responsibility. I had to determine what she will receive and when she will receive it. Because I own real estate, I also had to decide how those would be handled – would she inherit them or would they be sold and she took profits, who would continue managing them if she wasn’t at the appropriate age or not. All things that had to be thought of and planned for and then documented. As she and I get older, of course I’m able to go back and modify timing but that’s something you want to think through as well. Whereas if you are passing on things to others that are your age or older, this may not be a factor at all. But again, plan for it.
Now with my daughter having a Trust set up for her, I am doing my best these days to teach her financial literacy as well because I am not out her working hard for her to blow the money 😩😂. This book aided in me learning the best ways to teach my daughter about money NOW (not when she’s older). While creating generational wealth is important, that generational part can only continue if education is also a part. I hope you found this helpful and start doing your planning for you and your family’s future to secure generational wealth for the long haul!
And also, let’s celebrate, my daughter is now a Trust Fund Baby!!!! 🎉😎🥳🥲
Yours Truly,
Crystal