Building a Legacy: Estate Planning Strategies for Long-Term Wealth

Estate Planning | by Jules Buxbaum | Monday, March 10, 2025

Estate planning strategies are more relevant than ever for individuals who want to safeguard assets for themselves and their loved ones. If you’re seeking ways to build long-term wealth that lasts through multiple generations, you’re hardly alone in this pursuit.

From business owners and retirees to families of all sizes, thoughtful planning can help you minimize taxes, protect your assets, and direct them where you want them to go. If you’re curious about methods to keep more of what you earn, exploring strategies to reduce estate taxes is a great starting point.

What Does Long-Term Wealth Preservation Really Mean?

Long-term wealth preservation goes beyond accumulating assets. It involves safeguarding your financial legacy against market shifts, tax policies, and personal challenges.

According to Vanilla’s research, younger generations are less likely to have foundational estate documents, with only 39% of Gen Z reporting they have a will or trust.1 This gap underscores the importance of getting started early and staying flexible as your priorities shift over time.

Essential Documents to Kickstart Estate Planning

Two primary documents—wills and trusts—anchor most estate plans. A will designates how you’d like your financial and personal assets allocated, while specific trust structures can minimize probate costs and help reduce possible legal battles.

Other key pieces include powers of attorney, which let someone manage your financial or medical decisions if you become unable to do so. Beneficiary designations on financial accounts are also vital, as they can override instructions laid out in your will.

Key Tax Reduction Tactics

Estate taxes can significantly erode your assets. High-net-worth individuals often consider advanced vehicles like Grantor Retained Annuity Trusts (GRATs), Qualified Personal Residence Trusts (QPRTs), and Family Limited Partnerships (FLPs).

Each tool offers specific benefits, from allowing the transfer of appreciating assets to discounting business value for tax calculations. Local tax rules can also affect your strategy, so you might want to know more about estate taxes in different states if you own property or have family spread across the U.S.

Protecting Your Assets for Future Generations

Asset protection is an integral part of your legacy-building journey. Domestic Asset Protection Trusts (DAPTs) allow grantors to keep potential creditors at bay while retaining some benefits from those assets.

To guard against large estate tax bills or unforeseen events, you might explore life insurance held in an irrevocable trust. This approach can help you secure liquidity while keeping insurance proceeds out of your taxable estate. Some families also examine advanced tax planning for multi-generational wealth to find ways to maximize what heirs actually receive.

Ensuring Business Continuity

For entrepreneurs, estate planning isn’t just about personal assets. It’s equally about business continuity. A solid buy/sell agreement spells out how ownership transfers occur if a key stakeholder passes away or leaves.

However, each jurisdiction has its quirks, so staying informed on estate planning laws in certain states can be pivotal if your business or real estate interests span multiple regions. Without a succession plan, family-run companies risk losing significant value during a leadership vacuum.

Philanthropy and Charitable Trusts

Giving back can be another defining element of your legacy. Charitable Remainder Trusts (CRTs) can offer a steady source of income during your lifetime while benefiting your favorite causes afterward.

Data from the Giving USA Foundation reveals that charitable bequests have seen a 10.3% increase in recent years.1 These philanthropic strategies not only reduce estate tax exposure but can also place your family’s name alongside the causes you value most.

Common Roadblocks and How to Overcome Them

One common roadblock is the assumption that default financial plans automatically suit everyone. Consider that your ideal level of investment risk might be higher or lower than what popular “glide path” approaches suggest, especially if you have significant future earnings potential.

Another challenge is feeling overwhelmed by technical details. A practical starting point is to model different scenarios. The Two Pi Financial Planner shows how changing factors such as retirement age, savings rate, or risk level could improve the probability that your estate plan and retirement funds stay robust across your lifetime.

The Bottom Line

Crafting an estate plan that lasts generations demands more than just drafting a will. Strategic gifting, trust creation, and asset protection measures can reinvent a plan from a simple set of instructions into a dynamic roadmap for long-term success.

If you’re weighing your options, you may also explore creating a family trust to further protect and direct your wealth. Thoughtful decisions made today can yield stability for tomorrow’s generations—and solidify the legacy you leave behind.

References

1. Vanilla. (2025). “State of Estate Planning Report.” Available at: (https://www.businesswire.com/news/home/20241119116381/en/Vanilla-Releases-2025-State-of-Estate-Planning-Report-Unveiling-New-Insights-into-Modern-Estate-Planning-Trends)
2. Morgan Stanley. (2024). “Estate Planning Checklist.” Available at: https://www.morganstanley.com/articles/estate-planning-checklist(https://www.morganstanley.com/articles/estate-planning-checklist)
3. Fidelity. (2023). “Estate Planning Guide.” Available at: https://www.fidelity.com/learning-center/wealth-management-insights/estate-planning-guide(https://www.fidelity.com/learning-center/wealth-management-insights/estate-planning-guide)