As the sky fills with fireworks this Fourth of July, many of us will gather with family, enjoying picnics, sharing stories, and reflecting on the meaning of freedom. It's a time to remember the generations that came before us—those who worked, sacrificed, and built the foundation we stand on today.

But family legacies aren't just about stories and traditions. They're also about the homes we inherit, the businesses we pass down, and the wealth we protect.

Just as our nation's founders carefully planned for a future they would never see, each of us has the opportunity to protect what we've built for the generations who will come after us. The truth is, wealth—no matter how large or modest—doesn't last without a plan. Without careful, purpose-driven planning, assets can quickly disappear to taxes, poor decisions, or unprepared heirs.

Multi-generational wealth planning is how we protect not just money, but the freedom and security our families deserve for years to come.

What is Purpose-Driven Estate Planning?

Purpose-driven estate planning goes beyond simply writing a will or deciding who gets what. It's about:

• Making sure your wealth serves a long-term purpose.
• Protecting your assets from divorce, creditors, and lawsuits.
• Preparing your family to manage and grow what you've built.

Without thoughtful planning, even substantial wealth can be lost in just a generation or two.

Key Strategies for Protecting Multi-Generational Wealth in Pennsylvania

In Pennsylvania, there are specific tools and strategies that can help secure your family's future and preserve your legacy.

1. Protective Trusts for Heirs

Trusts are essential for keeping wealth in the family and shielding it from outside risks. Lifetime Protection Trusts can:

• Safeguard assets from divorce settlements and creditors.
• Delay distributions until heirs reach key ages or milestones.
• Include “spendthrift” clauses to prevent irresponsible spending.

This type of trust can ensure that your heirs benefit from your assets without risking immediate loss or mismanagement.

2. Educating the Next Generation

One of the greatest risks to multi-generational wealth is lack of preparation. Purpose-driven planning includes educating your heirs about managing wealth, preserving family values, and understanding the responsibility that comes with inheritance.

Consider incorporating family meetings, financial education, or a family mission statement to guide your heirs beyond just the numbers.

3. Minimizing Pennsylvania Inheritance Tax and Federal Estate Tax

Pennsylvania imposes an inheritance tax on most asset transfers to family members. With smart planning—such as lifetime gifting, beneficiary designations, and trust strategies—you can reduce this tax impact and keep more wealth in the family.

For high-net-worth individuals, it's also important to consider the federal estate tax. In 2025, the federal estate tax exemption is $13.99 million per person (or $27.98 million for married couples), but this exemption is scheduled to drop significantly after December 31, 2025. Estates that exceed the exemption may face a 40% federal estate tax on the amount over the limit. While we expect Congress to act to make this high exemption limit permanent, as of this writing, the bill has not been made law.

Now is an excellent time to explore lifetime gifts, advanced trust planning, and other strategies to lock in today's historically high exemptions before they are reduced.

4. Preserving Family Values Alongside Wealth

Consider creating a family legacy letter or mission statement that captures the story behind your wealth—what it means, how it should be used, and what you hope future generations will carry forward. This is a powerful way to pass on not just assets, but values.

Freedom Begins with a Plan

This Independence Day, as you watch the fireworks and think about the legacy of those who came before us, take a moment to think about the legacy you are creating for those who will come after you.

Will your family's future be secure, or will they face the uncertainty that comes without a plan?

Purpose-driven estate planning empowers you to protect your family's freedom and financial security for generations to come. Whether you're just starting to build your wealth or managing a complex estate, a thoughtful plan is the foundation of your family's future independence.

If you're ready to start that conversation, I invite you to schedule a free consultation with my office. Together, we can create a plan that protects what matters most to you.

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