A fundamental principle of financial planning isn’t only to accumulate wealth for yourself but to ensure your financial success benefits your loved ones and future generations. We take the time to mentor all our clients at the Strategic Advisor Board on this very topic. Creating a solid financial legacy requires careful planning, strategic investments, and a thorough understanding of legal and tax implications. Here are the steps you need to take to ensure a lasting financial legacy.

Understand the financial legacy

A financial legacy refers to the assets and principles you pass on to the next generation. This includes tangible assets such as real estate, investments, money, values, and attitudes about money and wealth management. The goal is to provide financial stability and equip your heirs with the skills and knowledge to responsibly manage and grow their inheritance.

Several steps are required to create a solid financial legacy:

  1. Estate planning: Estate planning is deciding how your assets will be distributed after your death. A well-structured estate plan minimizes tax burdens, avoids probate proceedings, and ensures that your assets are transferred according to your wishes.
  2. Wealth accumulation and preservation: This includes investing wisely to grow wealth, preserving it through risk management strategies, and ensuring your investments align with your long-term goals.
  3. Strategic giving: Philanthropy can be a powerful tool for leaving a financial legacy. Giving to causes you care about can positively impact and create a lasting legacy.
  4. Financial education: Instilling financial knowledge and values in the next generation is vital. This will prepare them to be responsible with their inheritance and continue to build their financial legacy.

The pillars of creating a financial legacy

Creating a lasting financial legacy requires careful planning and strategy. Here are some steps you can take:

  1. Estate Planning

Creating a comprehensive estate plan is the first step to leaving a financial legacy. This includes writing a will, setting up trusts, naming beneficiaries, and appointing an executor. You should also consider estate taxes and look for legal ways to minimize them. Hiring an estate planning attorney can be beneficial to ensure your plan is legally sound and your goals are met.

  1. Investments and wealth preservation

Investments are a powerful tool for wealth accumulation. A well-diversified investment portfolio can generate substantial returns over the long term. However, it’s just as important to preserve your wealth. This includes risk management strategies like insurance, an emergency fund, and regularly reviewing your portfolio to adjust your investments as needed.

  1. Philanthropy

Strategic giving is a great way to leave a financial legacy. By supporting projects you care about, you can create lasting change and pass on important values to the next generation. You can make substantial tax-deductible donations by setting up a charitable trust or foundation.

  1. Financial education

Passing on your financial knowledge and values is arguably one of the most valuable parts of your legacy. Teaching your children about money management, investing, and philanthropy can help them handle their future inheritance responsibly. You might also consider starting a family foundation to engage your family in philanthropy and provide practical financial education.

Building a financial legacy in the digital age

The digital age brings new opportunities and challenges for financial legacies. Digital assets such as cryptocurrencies, online businesses, and digital copyrights can significantly contribute to your legacy. However, managing and accounting for these assets in your estate plan can be complex. Here are some tips:

  1. Keep an inventory: Document your digital assets, including accounts, passwords, and important information. This will help your executor manage these assets after your death.
  2. Include digital assets in your estate plan: Make sure your will or trust clearly states how your digital assets will be handled.
  3. Understand the legal implications: The laws governing digital assets vary. Therefore, it’s essential to consult an attorney to understand these assets’ legal consequences and tax treatment.

Deepening the impact with strategies for a solid financial legacy

Now that we’ve covered the basics of building a financial legacy, let’s look at strategies you can use to amplify the impact of your legacy.

  1. Diversify investments: A well-diversified investment portfolio can help your wealth grow. This means spreading your investments across different asset classes and sectors to minimize risk and increase returns.
  2. Estate tax planning: Good estate planning can minimize the tax burden and maximize the wealth that passes to your heirs. This includes strategies such as making gifts during your lifetime, establishing trusts, or making charitable donations.
  3. Impact investing: Investing in companies or funds that align with your values can generate financial returns while contributing to social or environmental causes you care about.
  4. Philanthropic planning: You can increase the impact of your giving with strategic philanthropy. This can include establishing an endowment fund or private foundation that allows you to make substantial gifts and involve your family in philanthropy.
  5. Succession planning: If you own a business, succession planning is critical. A well-thought-out succession plan will ensure a smooth transition of your business and preserve its value for future generations.
  6. Education and mentoring: By educating your heirs about wealth management, you prepare them to handle their inheritance and help them understand the responsibilities that come with wealth.
  7. Legacy letters and ethical wills: In addition to legal documents, you can also write a legacy letter or ethical will to pass on your values, life lessons, and hopes to your heirs.


A financial legacy is about more than just transferring assets. It’s about passing on values, making a difference, and ensuring financial stability for future generations. You can create a solid financial legacy that will stand the test of time through careful planning, strategic investing, philanthropy, and financial education.