Revocable Family Trust: A traditional revocable family trust is a common and relatively simple strategy for wealth management. Parents can set age-based thresholds for distributions to their children, allowing beneficiaries to gradually access the funds and learn from their financial decisions over time.
Family Limited Partnerships: Another strategy is to establish a family limited partnership, in which a valuable asset, like a commercial property, is placed into the partnership. The children can become limited partners, and a third-party trustee or real estate manager can serve as the general partner, making leasing and management decisions.
Family LLC: A family LLC can be used as a vehicle to distribute wealth to the next generation, with family members as members of the LLC. This structure provides liability protection and centralized management of the assets.
Generational Trust: A generational trust can be set up to disperse wealth not only to children but also to grandchildren or even further generations. This trust can be designed with specific rules and guidelines for asset management and distribution, providing long-term financial security for multiple generations.