Navigating generational wealth transfer.

By Tresp, Day & Associates · April 21, 2025

There is an old saying that wealth goes “shirtsleeves to shirtsleeves in three generations.” The families who beat that pattern don’t do it by luck, they plan the transfer deliberately, protect what they pass on, and prepare the people who will receive it. Here is how that planning works.

Structure the transfer

A thoughtful estate plan moves wealth to the next generation efficiently, using lifetime gifting, trusts, family entities, and tax strategy to reduce or eliminate estate tax and avoid the cost and delay of probate. For business owners, coordinated business succession planning keeps the enterprise intact through the handoff.

Protect the inheritance

The most overlooked step is protecting the wealth after it transfers. Assets left to a child outright are exposed to that child’s divorce, lawsuits, and creditors from the moment they’re received. Leaving inheritances in properly drafted trusts, including dynasty trusts that can protect wealth for multiple generations, lets heirs benefit while keeping the assets shielded. This is the same protection principle that guards your wealth, extended forward.

Prepare the next generation

Structure alone isn’t enough. Heirs who don’t understand the plan, or the responsibility that comes with wealth, can undo it quickly. Financial literacy, clear communication about the family’s intentions, and gradually involving the next generation are as important as the legal documents. Trusts can also build in guardrails, distributing wealth over time or tying it to milestones.

Tailored to your family

Every family is different in its assets, values, and dynamics. Since 1992, Tresp, Day & Associates has helped families design generational transfer plans that fit, protecting the legacy and the people who inherit it.