Latest news with #JohnNebeker
Forbes
5 days ago
- Business
- Forbes
Building Generational Wealth: How To Ensure Your Assets Last
Man taking photo of happy multi-generation family with smartphone. The United States is in the midst of one of the largest wealth transfers in history. With the Great Wealth Transfer underway, the latest figures from Cerulli (as of December 2024) show that $124 trillion will transfer through 2048, with $105 trillion going to heirs. Estate planning is no longer just for the wealthy—it's something everyone with assets should consider. According to Jen Galvagna, Head of Trust, Estates and Tax at Bank of America Private Bank, and John Nebeker, a financial advisor and author of The Family Bank: The Key to Generational Wealth, having a clear plan in place is crucial for anyone looking to pass on wealth thoughtfully. "When I start a class, I always ask, 'What happens to your assets if you die without a will or estate plan?' Almost always, someone answers, 'The state takes your property,'" Galvagna says. "But that's not true. The state simply decides where your assets go, and it may not be where you want them." Without a proper estate plan, your assets will be distributed according to your state's intestacy laws, which may not reflect your wishes. Galvagna points to the case of musical legend Prince, who died without a will and left his estate tangled in a years-long legal battle. "When you don't plan, others will decide where your assets go," she notes. "In Prince's case, his music and legacy were at risk, and ultimately, the distribution wasn't what he likely would have wanted." Failing to create an estate plan can lead to pitfalls in asset distribution, guardianship, and financial decision-making. For parents, one of the most important decisions is ensuring that their children, especially minors, are taken care of. Galvagna suggests that an estate plan should include asset distribution, designate a guardian for your children, and provide instructions in case you become incapacitated. "If you have minor children, you need to decide who will care for them if something happens to you," Galvagna says. "And just as important, you need a strategy in place for what happens if you're unable to make financial decisions for yourself." As the population ages, the need for estate planning has never been more urgent. Without a plan, the risks only increase as people age. One of the biggest misconceptions about estate planning is that it's only for the ultra-wealthy. Galvagna debunks this myth, saying that anyone with assets, no matter how small, should have a plan. "It's a common myth that trusts are only for the ultra-high-net-worth," she says. "Anyone with assets should have a say in how those assets are distributed. Trusts provide a way to control that distribution over time. It's not just about money—it's about your legacy." In fact, trusts allow individuals to set up long-term strategies for distributing their assets. A trust ensures that beneficiaries are taken care of for generations instead of handing them a lump sum that could quickly be spent. One strategy for preserving wealth across generations is the "Family Bank" concept, popularized by financial advisor John Nebeker. In his book The Family Bank: The Key to Generational Wealth, Nebeker explains how some of America's wealthiest families, including the Rockefellers, have used this model to sustain and grow their wealth. 'The Family Bank is about creating opportunity, not entitlement,' Nebeker says. 'Families replace gifts with loans, and entitlements with opportunities.' Instead of leaving a lump sum inheritance, a Family Bank provides structured loans to heirs for significant life milestones—like education, buying a home, or starting a business. This approach encourages responsibility, and allows families to retain control over the assets, ensuring wealth is used wisely and not squandered. For families looking to build generational wealth, the Family Bank offers a structured way to ensure assets are used responsibly, preserving long-term financial success. Family conflict is one of the biggest challenges in estate planning. Galvagna recommends open and transparent conversations with family members to avoid surprises and misunderstandings after your passing. "There's nothing worse than family fighting over who gets what," she says. "Be upfront with your kids and even involve them in the decision-making process. For instance, if you have tangible property, like a family heirloom, ask your children what they'd like to inherit." She shares an example of a family with four children and valuable heirlooms. By having each child choose their top three items, the parents were able to distribute the property fairly without any conflict. Parents with wealth often worry that their children will squander their inheritance. Galvagna explains that trusts can set restrictions on how and when beneficiaries can access funds, preventing misuse or financial irresponsibility. "Trusts are a powerful tool to protect assets," she says. "If you leave an inheritance outright, it becomes subject to divorce settlements or creditors. But with a trust, you can control how and when the assets are distributed, even for health, education, and maintenance." For parents concerned about their children's ability to manage large sums of money, Galvagna suggests creating specific conditions for accessing trust funds. For example, a child may only be able to use their inheritance for buying a home or starting a business rather than for frivolous spending. While many people think estate planning is only for the elderly or the ultra-rich, Galvagna argues that it's something everyone should do—especially if they have children or significant assets. Whether it's a 401(k), a house, or savings, planning ahead ensures your wishes are honored and your legacy is preserved. "Estate planning isn't about death—it's about ensuring your family is protected, no matter what happens," she says. "Whether you're in your 40s or 70s, it's never too early to start." By taking the right steps and working with a professional advisor, you can create a plan that ensures your wealth is passed on as intended—without unnecessary legal battles or family disputes.
Epoch Times
12-05-2025
- Business
- Epoch Times
5 Tips for Building Generational Wealth
America is in the midst of the greatest wealth transfer in history. Over the next decade, an estimated $80 to $100 trillion will pass from baby boomers to their children and grandchildren. But one critical question remains: Will their heirs be ready for it? A 2023 study by AMG National found that 90 percent of inherited wealth disappears by the third generation. That sobering statistic is leading more families to ask: How do we build wealth that actually lasts? Financial advisor and author John Nebeker believes the answer lies in adopting a strategy used by some of America's wealthiest dynasties: the Family Bank. In his book The Family Bank: The Key to Generational Wealth, Nebeker shares how families like the Rockefellers used this approach to grow wealth while preparing future generations to be responsible stewards, not entitled heirs. Here are five key tips from Nebeker for building real generational wealth. 1. Rethink Your Estate Plan Traditional estate plans often fall short. They might protect your money from external threats, but they rarely account for internal ones, like mismanagement, entitlement, or family disputes. 'Traditional planning does a lousy job fulfilling people's wishes,' Nebeker said. 'Spendthrift heirs often dissipate whatever is left of the estate.' If you've already set up a plan, don't worry—it may still be adaptable. Talk to your estate attorney or financial planner about aligning your plan with longer-term family wealth goals. 2. Replace Entitlement With Opportunity Through a Family Bank A Family Bank is a nontraditional structure that allows families to retain and grow assets over time while providing support to future generations. Instead of handing out inheritances, the family makes structured loans to heirs to fund things like education, business ventures, or home purchases. 'Families replace gifts with loans, and entitlements with opportunities,' Nebeker said. Many successful families use trusts to manage their Family Bank. Trusts can help reduce estate taxes, ensure legal protection, and maintain generational financial control. 3. Talk About Money—Yes, Really Many parents avoid talking to their kids about inheritance plans. But keeping financial plans secret can do more harm than good. Related Stories 2/18/2025 12/27/2024 'Money can drive people apart, but with wise design, it can also bring them closer together,' Nebeker said. 'It's possible—even probable—to make money a unifying force in your family with the right structure.' Start by communicating your goals and expectations. Invite family members to participate in discussions so they understand the plan and its values. 4. Choose the Right People to Manage the Family Bank A Family Bank typically has a 'Bank Board' or trustees who oversee assets and make decisions about loans and investments. These individuals are often family members, but can also include outside advisors. 'The selection of trustees may be the deciding factor in whether a Family Bank is successful,' Nebeker said. 'They need to manage assets, stay connected to the family, and uphold the founding principles.' Regular board meetings and clear communication help keep the structure transparent and effective. 5. Invest in Financial Education for the Next Generation A lasting legacy requires more than money—it requires knowledge. The Family Bank model emphasizes preparing heirs to be financially competent and mission-driven. 'Training young members is a cornerstone responsibility of the board,' Nebeker said. 'When they experience firsthand what it means to borrow, invest, and give responsibly, they are far more likely to succeed.' A well-structured Family Bank can give heirs the tools to grow wealth, give back to their communities, and honor the family's values. Final Thoughts: You Can Build Wealth That Lasts Generational wealth isn't just about passing down assets—it's about passing down vision, values, and responsibility. With the right strategy, your legacy can empower future generations instead of burdening them. 'The Family Bank is about creating opportunity, not entitlement,' Nebeker said. 'That's the key to wealth that lasts.' By Jaime Catmull The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
Entrepreneur
09-05-2025
- Business
- Entrepreneur
5 Tips for Building Generational Wealth
America is in the midst of the greatest wealth transfer in history. Over the next decade, an estimated $80 to $100 trillion will pass from baby boomers to their children... This story originally appeared on Due America is in the midst of the greatest wealth transfer in history. Over the next decade, an estimated $80 to $100 trillion will pass from baby boomers to their children and grandchildren. But one critical question remains: Will their heirs be ready for it? A 2023 study by AMG National found that 90% of inherited wealth disappears by the third generation. That sobering statistic is leading more families to ask: How do we build wealth that actually lasts? Financial advisor and author John Nebeker believes the answer lies in adopting a strategy used by some of America's wealthiest dynasties: the Family Bank. In his book The Family Bank: The Key to Generational Wealth, Nebeker shares how families like the Rockefellers used this approach to grow wealth while preparing future generations to be responsible stewards, not entitled heirs. Here are five key tips from Nebeker for building real generational wealth. 1. Rethink Your Estate Plan Traditional estate plans often fall short. They might protect your money from external threats, but they rarely account for internal ones, like mismanagement, entitlement, or family disputes. 'Traditional planning does a lousy job fulfilling people's wishes,' Nebeker said. 'Spendthrift heirs often dissipate whatever is left of the estate.' If you've already set up a plan, don't worry—it may still be adaptable. Talk to your estate attorney or financial planner about aligning your plan with longer-term family wealth goals. 2. Replace Entitlement With Opportunity Through a Family Bank A Family Bank is a nontraditional structure that allows families to retain and grow assets over time while providing support to future generations. Instead of handing out inheritances, the family makes structured loans to heirs to fund things like education, business ventures, or home purchases. 'Families replace gifts with loans, and entitlements with opportunities,' Nebeker said. Many successful families use trusts to manage their Family Bank. Trusts can help reduce estate taxes, ensure legal protection, and maintain generational financial control. 3. Talk About Money—Yes, Really Many parents avoid talking to their kids about inheritance plans. But keeping financial plans secret can do more harm than good. 'Money can drive people apart, but with wise design, it can also bring them closer together,' Nebeker said. 'It's possible—even probable—to make money a unifying force in your family with the right structure.' Start by communicating your goals and expectations. Invite family members to participate in discussions so they understand the plan and its values. 4. Choose the Right People to Manage the Family Bank A Family Bank typically has a 'Bank Board' or trustees who oversee assets and make decisions about loans and investments. These individuals are often family members, but can also include outside advisors. 'The selection of trustees may be the deciding factor in whether a Family Bank is successful,' Nebeker said. 'They need to manage assets, stay connected to the family, and uphold the founding principles.' Regular board meetings and clear communication help keep the structure transparent and effective. 5. Invest in Financial Education for the Next Generation A lasting legacy requires more than money—it requires knowledge. The Family Bank model emphasizes preparing heirs to be financially competent and mission-driven. 'Training young members is a cornerstone responsibility of the board,' Nebeker said. 'When they experience firsthand what it means to borrow, invest, and give responsibly, they are far more likely to succeed.' A well-structured Family Bank can give heirs the tools to grow wealth, give back to their communities, and honor the family's values. Final Thought: You Can Build Wealth That Lasts Generational wealth isn't just about passing down assets—it's about passing down vision, values, and responsibility. With the right strategy, your legacy can empower future generations instead of burdening them. 'The Family Bank is about creating opportunity, not entitlement,' Nebeker said. 'That's the key to wealth that lasts.' Featured Image Credit: Photo by Los Muertos Crew; Pexels The post 5 Tips for Building Generational Wealth appeared first on Due.
