Preserving Generational Wealth [On-Demand Webinar] Video from Savant Wealth Management

Elena:
Hello and welcome to today’s Savant live webinar. Thank you so much for joining us.

Today we’re discussing an important and timely topic: Preserving Generational Wealth.

I’m Elena Davalos, a Wealth Transfer Advisor, and joining me is Financial Advisor Evan Kuykendall.

Evan:
Thanks, Elena. Excited to be here. This is such an important topic—not only the logistics of how to pass wealth, but how to do it tax-efficiently and with the right guidance for future generations.

Elena:
Exactly. Generational wealth is about more than money. It’s about legacy—the idea that you’ve worked hard enough that your children, grandchildren, and beyond will benefit from your financial decisions long after you’re gone.

Here’s what we’ll cover today:

1. Estate planning tools to protect your wealth
2. Lifetime gifting strategies
3. Tax-smart ways to transfer wealth
4. Passing down knowledge and values—not just money

Let’s start with estate planning.

Estate Planning: Your Most Powerful Tool

Elena:
Estate planning is the foundation for preserving wealth. One of the strongest tools available is the descendants trust, sometimes called a cascading trust.

This type of trust:

• Allows assets to stay in trust for your kids, grandkids, and future generations
• Protects assets from divorce, creditors, and state estate taxes
• Can last 90 years—or even indefinitely, depending on your state

Many people associate trusts with ultra-wealthy families, but trusts are a practical solution for anyone who wants to preserve their legacy.

Why don’t more people do this?

• Trusts take more time to set up
• They require key decisions: trustee selection, distribution rules, and duration
• But the asset protection they offer can be worth it

If you choose not to use a trust, the default option is outright distribution. It’s simpler, but riskier. Those assets are unprotected and can easily be lost, misused, or taken in a divorce.

Coordinating Your Assets

Elena:
Even with a trust, proper coordination is key. If assets aren’t aligned with your estate plan, your trust may never get funded.

We recommend:

• Creating a net worth statement
• Making sure all assets—bank accounts, insurance, property—are aligned with your will or trust
• Double-checking all beneficiary designations

And be aware: your will doesn’t override beneficiary forms. If your old 401(k) lists your ex-spouse, they’re still getting that money unless you’ve updated it.

Qualified Accounts & Trusts

Elena:
Qualified accounts—like 401(k)s and IRAs—have their own rules. These can be left to trusts, but the trust must meet IRS guidelines to preserve tax benefits. There are two options:

• Conduit Trust – RMDs are passed directly to the beneficiary
• Accumulation Trust – RMDs are retained in the trust

Each has pros and cons depending on whether your priority is asset protection or income tax efficiency.

This is complex territory, so it’s best to work with a knowledgeable advisor and estate attorney.

Choosing a Trustee

Elena:
You’ll also need to choose a trustee. Some options include:

• A beneficiary trustee, like your child, with distribution standards like health, education, maintenance, and support (HEMS)
• A third-party trustee, like a sibling or close friend, for more oversight
• A corporate trustee, like a bank or trust company, for long-term objectivity and professionalism
• Co-trustees, especially when you want to pair a family member with someone more financially mature

Whoever you choose, make sure they align with your goals. And don’t forget to give guidance. Even a short letter can go a long way in helping a trustee honor your wishes.

Lifetime Gifting

Evan:
Let’s switch gears to lifetime gifting.

Before gifting, ask yourself:

• Can I afford to give this away now?
• Do I want to see my impact during my lifetime?
• Am I trying to reduce estate taxes?

Gifting while alive—“gifting with warm hands”—can help your heirs sooner and potentially create more long-term value through compounding.

For example, gifting $5,000 today that’s invested in a 100% stock portfolio could grow significantly more than if gifted 20 years later.

But gifting is emotional. Some parents fear spoiling their children or worry they aren’t ready to manage the money. That’s normal—and that’s where planning helps.

Giving Strategically

Evan:
Let’s talk about some smart, tax-efficient ways to give:

1. Donor Advised Funds (DAFs):

• Contributions are tax-deductible
• You control where and when funds go to charity
• Great for donating appreciated stock to avoid capital gains

2. Gifting Appreciated Stock:

• If you donate stock directly, you avoid capital gains tax and get a deduction
• Especially valuable for stock with a low cost basis

3. Qualified Charitable Distributions (QCDs):

• If you’re 70½ or older, you can donate up to $100K/year directly from your IRA
• Satisfies RMD requirements and reduces taxable income

Estate & Gift Taxes

Elena:
Let’s briefly talk about federal estate and gift taxes.

As of 2025:

• The annual gift exclusion is $19,000 per recipient
• The lifetime exemption is $13.99 million per person (almost $28 million per couple)

That said:

• These numbers are subject to change
• Many states have separate estate or inheritance taxes
• Planning ahead is crucial, especially if you’re over state thresholds

If you’re considering large lifetime gifts, you’ll need to:

1. Identify the beneficiary and method (trust or outright)
2. Transfer the asset
3. Get a valuation
4. File a Form 709 gift tax return

It’s a detailed process—but it can significantly reduce your taxable estate and protect growth from future taxes.

Asset Allocation & Location

Evan:
How you invest—and where you hold those investments—can make a big difference over time.

We often talk about three types of accounts:

• Roth accounts (tax-free growth)
• Tax-deferred accounts (like traditional IRAs/401(k)s)
• Taxable accounts (subject to capital gains)

Asset location matters. For example:

• High-growth assets like small caps → Roth accounts
• Bonds and REITs → Traditional IRAs (to defer high tax rates)
• Stocks with gains → Taxable accounts (to benefit from step-up at death)

These choices can lead to greater tax efficiency—and more wealth passed on.

Passing Down Knowledge & Values

Elena:
Let’s not forget that preserving wealth isn’t just about money—it’s about passing on wisdom.

Have open conversations with your heirs. Explain your estate plan, your values, and your intentions.

Evan:
Estate planning is hard because it forces us to talk about two uncomfortable topics: death and money. But avoiding the conversation leads to confusion and missed opportunities.

Make a plan, but also teach:

• Budgeting
• Saving
• Investing basics
• Credit awareness

Lead by example, and share stories—both the wins and the mistakes.

Final Thoughts

Elena:
If you want your wealth to last, it’s about more than just setting up a trust or making a gift. It’s about being thoughtful and intentional—financially and emotionally.

Evan:
And don’t forget your team. Bring in professionals—a financial advisor, estate attorney, CPA—to help guide and support your family across generations.

Next Steps

• 📞 Want help building your plan? Schedule a complimentary introductory call.
• 📥 Download free checklists & resources at savantwealth.com/guides

Live Q&A Highlights

Q: What are the best stocks to gift?
Evan: Stocks with high gains and low cost basis. Avoid gifting stocks that have lost value—sell those instead and gift the cash.

Q: How do I pick a trustee if my kids are young?
Elena: Choose someone you trust to make good decisions, even if they’re not a financial expert. Corporate trustees are an option too.

Q: Will my estate attorney work with my advisor?
Evan: Absolutely. At Savant, we collaborate with attorneys, CPAs, and other specialists to align your plan.

Elena:
Thank you all for joining us! We hope you found today’s webinar helpful and empowering.

Evan:
Thanks, everyone. We look forward to helping you build and preserve your legacy.