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We’re heading into the thick of the $90 trillion “Great Wealth Transfer,” which will see millions of people belonging to the Gen X, millennial and Gen Z cohorts inherit money from their boomer loved ones as they pass. As chatter around the Great Wealth Transfer gains steam, the importance of legacy planning is making headlines. But legacy planning isn’t just for boomers — it’s something anyone who wants to pass anything down to loved ones should be doing.
Legacy planning can be complex and is best done with the help of a competent financial advisor who can guide you through the ins and outs. Here are eight truths about legacy planning that any solid financial advisor should share with you.
Legacy Planning Is Suitable for Everyone, Regardless of Wealth or Age
Legacy planning isn’t just for the ultra-wealthy. It’s for anyone who has something — anything — to pass down to loved ones. A competent financial advisor will help you build a plan that honors your accomplishments and your wishes, regardless of your net worth or age.
“Whether you’re 25 with digital assets or 65 with a retirement account, having a plan in place ensures your wishes are honored and loved ones are spared unnecessary legal and financial burdens,” said Andres Mazabel, general manager, advisor at Trust & Will.
Legacy Planning Isn’t Only About Assets; It’s Also About Intention
A financial legacy, in terms of its assets, may not feel very poetic. You’re leaving a certain amount of things to a certain amount of people, and that’s that. It appears to be merely transactional. But a competent financial advisor will push you to think deeper.
“Too many people think legacy is simply a will and an investment portfolio,” said Andrew Constantinides, CFP, investment advisor and RSU strategist at Neil Jesani Wealth Management, LLC. “But true legacy planning begins with clarity of goals and intent.”
Constantinides encourages clients to start by asking, “What do you want your wealth to do after you?” He says a good advisor will help coordinate with estate planning attorneys to translate that vision into structures like trusts, charitable foundations, or generational investment vehicles.
Legacy planning, he noted, is not just about giving money away — it’s about preserving values, minimizing future uncertainty, and making a lasting impact.
Inheritances Can Rattle Family Dynamics — Guides and Guardrails Are Needed
Even the happiest and most peaceful families have … issues. And an inheritance could very well set those issues ablaze. A thoughtful advisor won’t just focus on paperwork — they’ll also help you navigate family dynamics.
Steve Lockshin, founder and financial advisor at Vanilla, emphasized that advisors should help families build governance structures, create clear distribution policies, and choose trustees thoughtfully. In his experience, money has the power to enhance generosity, opportunity and connection — but only with careful planning.
“Good planning acknowledges the emotional weight of inheritance and installs rails to guide, not just guard, the wealth,” Lockshin said. “In doing so, it helps prevent the trust from becoming a source of conflict and instead positions it as a force for good.”
Legacy Planning Is an Act of Love, Not of Control
When you start planning your financial legacy, you may worry you’re being a little bossy. Melissa Cox, CFP, owner at Future-Focused Wealth, noted that good legacy planning about making life easier for heirs, not controlling them.
“Good legacy planning isn’t about managing people from the grave, it’s about ensuring they’re cared for and that your intentions are respected,” she said. “That’s love, not control.”
Taxes Are Your Legacy’s Biggest Threat
It’s rational to assume that market volatility is the biggest threat to your legacy. But Constantinides notes that the most formidable threat to legacy wealth is something rarely talked about: taxes. A skilled advisor will plan for these headwinds in advance.
“The right advisor will focus on growing your wealth while minimizing exposure,” Constantinides said. “That means understanding tools like step-up basis, 1031 exchanges, real estate depreciation techniques and the tax treatment of income-generating versus capital appreciation investments. Good legacy planning isn’t reactive. It’s engineered, then re-engineered on an annual basis.”
Liquidity Matters
According to Constantinides, one of the most overlooked elements in legacy planning is liquidity. Many estates consist of illiquid assets — real estate, business interests or long-term investments — that can’t easily be turned into cash when heirs need it.
“Working with an advisor can ensure a portion of your estate is arranged for liquidity so beneficiaries aren’t racing to cover taxes, legal fees or distributions,” Constantinides said. “Whether through fully liquid vehicles like managed equity, semi-liquid private market funds or a laddered fixed income approach, liquidity planning is a cornerstone of a successful transfer of wealth.”
Legacy Planning Isn’t Only About Passing on Wealth, It’s About Passing on Wisdom
A competent financial advisor will also help you think beyond the numbers. Legacy planning is just as much about sharing your values, beliefs and financial lessons learned as it is about passing on wealth.
“I want my clients to feel proud of the story their money tells — not worried it will become a source of stress or division,” Cox said. “That’s why we start with the human part first and let the technical tools follow.”
Legacy Planning Starts Today
Legacy planning should start now, even if you’re young and haven’t built up much in terms of assets. The sooner you start, the more flexibility you have, and the more peace of mind you’ll gain.
“Planning early allows you to have compounding, protection, and market cycles to be on your side,” Constantinides said. “A good advisor brings structure to the strategy, whether that means naming beneficiaries properly, setting up trusts or shielding a family business from probate. The earlier you plan, the more options you leave behind.”
Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.
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