As high-net-worth individuals approach retirement, financial concerns begin to shift from accumulation to preservation and legacy. For many, the goal is no longer just ensuring a comfortable retirement — it’s about creating a meaningful legacy that helps benefit future generations and reflects their lifelong values.

Legacy planning goes beyond drafting a will or naming beneficiaries. It’s a strategic, comprehensive process that helps ensure your assets, intentions, and principles are preserved, protected, and passed on efficiently and respectfully. 

In this blog, we explore the importance of legacy planning for affluent families nearing retirement, the core components of an effective plan, and how working with an experienced team, like CKS Summit Group, can help guide you through the complexities.

Why Legacy Planning Matters

According to a 2024 study, the top 10% of U.S. households held approximately 67% of the nation’s wealth. With such significant assets at stake, high-net-worth retirees must consider not only how they spend in retirement, but also how they transfer wealth to the next generation without unintended consequences.

Legacy planning helps:

• Minimize estate taxes and probate costs
• Protect assets from lawsuits or creditors
• Provide for family members responsibly
• Preserve family businesses or real estate
• Establish philanthropic impact through charitable giving
• Promote family values and long-term financial education

In short, legacy planning is not just about money — it’s about meaning.

The Rising Importance of Multigenerational Wealth Transfer

We are currently amid what’s often called the “Great Wealth Transfer.” It’s projected that approximately $124 trillion in wealth will be transferred through 2048, with $105 trillion expected to flow to heirs and $18 trillion to charities. Notably, nearly $100 trillion of this transfer will originate from Baby Boomers and older generations, representing 81% of all transfers.

Despite the magnitude of this impending transfer, a significant portion of high-net-worth individuals have yet to establish formal wealth transfer plans. According to UBS’s Global Wealth Report 2024, many affluent individuals lack comprehensive strategies for intergenerational wealth transfer, highlighting the importance of proactive legacy planning. ​

Without a strategic plan, wealth can be dissipated through taxes, legal disputes, and a lack of preparation among heirs. Legacy planning seeks to mitigate these risks by helping ensure a smooth and intentional transfer of assets to future generations.

Core Components of Legacy Planning

1. Estate Planning

At the heart of legacy planning lies estate planning, which includes the drafting of legal documents such as:

• Wills: Define how your assets will be distributed and who will act as guardian for minors.
• Trusts: Used to avoid probate, minimize estate taxes, and control how and when beneficiaries receive assets.
• Powers of Attorney and Healthcare Directives: Assign trusted individuals to make financial or medical decisions on your behalf if you’re incapacitated.

For high-net-worth individuals, establishing irrevocable trusts, family limited partnerships, or charitable remainder trusts may help meet more complex estate planning goals.

2. Tax Efficiency Strategies

Federal estate taxes can take a significant portion of wealth if not managed proactively. The federal estate tax exemption is $13.99 million per individual (or $27.98 million for a married couple), but current laws are set to expire in 2026, potentially cutting the exemption in half.

Legacy planning strategies to consider include:

• Gifting strategies (utilizing the $19,000 annual exclusion per recipient)
• Generation-skipping transfer (GST) tax planning
• Roth IRA conversions (taxable now, but potentially more tax-efficient long-term)

3. Family Governance and Communication

One of the most overlooked — yet vital — aspects of legacy planning is preparing heirs to receive wealth. This includes:

• Regular family meetings about wealth transfer goals
• Setting expectations for stewardship of assets
• Creating a family mission statement
• Educating younger generations on responsible financial management

Legacy Planning Tools and Techniques

Here are some tools commonly used in successful legacy planning strategies:

1. Revocable Living Trusts: Used to avoid probate and provide flexibility during your lifetime, helping you maintain control while planning for the future.
2. Irrevocable Trusts: These can remove assets from your taxable estate and help provide asset protection, but they typically cannot be changed once established.
3. Charitable Giving Vehicles: Structures such as donor-advised funds and charitable remainder trusts allow individuals to leave a philanthropic legacy while potentially enjoying tax advantages.
4. Life Insurance: Used to provide liquidity for estate taxes or to equalize inheritances among heirs.
5. Business Succession Planning: For business owners, legacy planning may include structuring a sale, leadership transition, or transfer of ownership to the next generation.

The Emotional Side of Legacy

Financial decisions don’t happen in a vacuum. For many approaching retirement, the concept of legacy also touches on:

• Values: What principles or causes do you want to support?
• Impact: How do you want to be remembered?
• Responsibility: Are your heirs prepared for what they’ll inherit?

At CKS Summit Group, we understand that legacy is about more than numbers. It’s about creating a roadmap that reflects both financial prudence and personal meaning.

Common Legacy Planning Mistakes to Avoid

Even wealthy individuals can fall into pitfalls. Some common mistakes include:

• Procrastinating planning until it’s too late
• Failing to update plans after life events (birth, marriage, divorce, etc.)
• Not educating heirs on wealth responsibilities
• Ignoring liquidity needs, especially for estate taxes
• Neglecting digital assets or sentimental items

An effective legacy plan should be dynamic, reviewed regularly, and include both financial and non-financial goals.

Taking the Next Step

Legacy planning is not a one-time task — it’s an ongoing process of reflection, strategy, and execution. If you’re entering retirement with significant assets, don’t wait until a crisis forces action. Begin the conversation now.

Here’s how to get started:

1. Clarify your goals: What do you want your legacy to be?
2. Inventory your assets: Including real estate, investments, businesses, insurance, and heirlooms.
3. Assemble your team: Legal, tax, and financial professionals can work in coordination.
4. Educate your heirs: Prepare them emotionally and financially.
5. Review regularly: Revisit your plan every few years or after major life changes.

Final Thoughts

A well-designed legacy plan offers more than tax efficiency — it brings peace of mind. You’ve worked hard to build wealth. Thoughtful planning helps ensure that it continues to serve a purpose for generations to come.

At CKS Summit Group, we’re here to help you align your retirement planning with your long-term vision. 

Start planning your legacy today. Your future — and your family’s — is worth it.

Contact us for a complimentary consultation. 

Frequently Asked Questions

1. What is legacy planning, and how is it different from estate planning?

Legacy planning is a broader concept than traditional estate planning. While estate planning primarily focuses on the distribution of assets upon death, legacy planning encompasses long-term goals, including passing on family values, preparing heirs for wealth, philanthropic giving, and minimizing potential family conflicts. It takes a more holistic and intentional approach to ensure your wealth has a lasting, positive impact.

2. Why is legacy planning especially important for high-net-worth individuals?

For high-net-worth individuals, the stakes are higher. Without proper planning, wealth can be significantly eroded by estate taxes, legal fees, or poor financial decisions by unprepared heirs. Legacy planning provides a structured way to preserve family wealth, manage tax exposure, support causes that matter to you, and ensure your intentions are respected for generations to come.

3. What are some common tools used in legacy planning?

Common tools include:

• Wills and trusts
• Family limited partnerships (FLPs)
• Charitable giving strategies (such as donor-advised funds or charitable remainder trusts)
• Life insurance
• Letters of intent
• Family governance plans

4. How can I prepare my heirs to responsibly manage inherited wealth?

One of the biggest concerns in legacy planning is ensuring that heirs are financially prepared. Many high-net-worth families implement:

• Family meetings and financial education
• Mentorship and professional guidance
• Phased inheritance or trustee oversight
• Clear communication of values and expectations

By preparing the next generation early, you help preserve not just wealth, but your legacy.

Disclaimer: This article is for informational purposes only and should not be construed as financial, tax, or legal advice. Please consult with your attorney or tax professional for advice specific to your individual circumstances.