July 26, 2026
Proactive estate planning can help families build generational wealth while avoiding costly probate and legal battles.
Building wealth is only half the battle. Ensuring that wealth reaches the next generation is just as important. Yet, millions of Americans remain unprepared. According to Caring.com‘s 2025 Wills and Estate Planning Survey, fewer than half of adults have estate planning documents in place, and only 24% have a will—a sharp decline from previous years.
Financial advisors say that lack of preparation can leave loved ones navigating probate, a lengthy and often expensive court process that can delay the transfer of assets, increase legal fees, and expose a family’s financial affairs to the public.
“Having a legacy plan is one of the most thoughtful things you can do for your loved ones,” writes J. Burke “J.B.” Howard, the founder, president, and senior financial adviser of Merit Advisors, LLC. “If you can make these consequential decisions now—and get it all down in writing—your family and friends can help avoid the anxiety of having to guess, fight for, or fight over what you might have wanted.”
For many Black families working to build generational wealth, estate planning can help ensure that homes, retirement savings, businesses, and other assets are passed on according to their wishes. A will is often the foundation of an estate plan, allowing individuals to name beneficiaries, appoint an executor, designate guardians for minor children, and leave charitable gifts. However, experts note that a will alone typically does not avoid probate.
Other important documents include a living will, which outlines medical preferences if someone becomes incapacitated, along with healthcare and financial powers of attorney that authorize trusted individuals to make medical or financial decisions when needed.
Experts also recommend keeping beneficiary designations up to date on retirement accounts, life insurance policies, and bank accounts. Payable-on-death (POD) and transfer-on-death (TOD) designations allow many assets to transfer directly to beneficiaries, helping families avoid probate delays and, in some cases, providing tax advantages.
For those with more complex estates, a trust may offer additional benefits. Assets held in a trust generally bypass probate, allowing heirs to receive them more quickly while keeping estate matters private. Revocable trusts can be changed during the grantor’s lifetime, while irrevocable trusts may offer greater tax and creditor protections but require relinquishing control of the assets.
Estate planning isn’t just for the wealthy. Whether someone owns a home, has children, or is building a business, putting the proper legal documents in place can help protect loved ones and preserve wealth for future generations. As the advisor noted, “If retirement planning is about creating income for your life, legacy planning is about creating clarity for the people you leave behind.”
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