Consider these five steps when planning a lasting, values-driven legacy.
A well-designed estate plan can form the foundation for a family legacy, providing a values road map for future generations to follow.
Cathy Nakamura, CTFA, senior family office relationship manager at Wells Fargo Wealth & Investment Management, Wells Fargo Bank, N.A., has experience helping clients navigate the process of planning a lasting, values-driven legacy.
“A good starting point is to determine your values and how those values are reflected in your estate plan. You can create the structure to communicate those values to the next generation and beyond.”
Nakamura suggests taking these five steps:
1. Create a family mission statement
A family mission statement explains your values to pass on to the next generation. While not a legally binding document, it can communicate your values to future generations. Working through the details together, as a family, helps the next generation understand your wishes.
“I’ve found that oftentimes, it’s a sudden life event that makes the next generation aware of the family wealth,” Nakamura says. “The next generation may not know how to handle the wealth or honor their parents’ wishes.”
She encourages parents to outline their estate planning goals and objectives and create their family mission statement before sharing with the family. The Wells Fargo wealth team can work with the clients and their estate planning attorney.
“It starts with the wealth creator identifying their values and what they want their legacy to be,” Nakamura says. “Wells Fargo assists to engage the next generation and facilitate meaningful discussions to create the family mission statement together. Open communication helps beneficiaries to understand the values of the estate plan and alleviates potential family conflict.”
2. Encourage actions that align with family values
Your estate plan can encourage future generations to behave in a manner consistent with your family values. “For example, trust language to support choosing a less lucrative profession but one that aligns with the family’s values,” she says. “Similarly, they can set conditions that reward other behaviors, such as earning a degree or building a productive career.”
When beneficiaries understand the rationale behind your estate plan, it can foster greater family harmony.
3. Highlight the importance of education
Investing in younger generations by funding their education can be an important part of your values-based estate planning strategy — and may have tax advantages.
“Paying into a 529 plan or paying tuition bills directly to the institution can help reduce estate taxes,” Nakamura says. “In addition, you can make up to five years’ worth of annual exclusion gifts to the 529 plan in one year.Footnote1 So, based on the 2025 annual exclusion of $19,000 (or $38,000 per couple), you can contribute up to $95,000 (or $190,000 per couple) without using any of your lifetime exemption. While the money in 529 plans may only be used for educational expenses, they can also be transferred to another beneficiary, such as a grandchild or great-grandchild, if the original intended beneficiary does not use the funds.”
Please consider the investment objectives, risks, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest.
Another option is to create a trust with provisions providing financial support to named beneficiaries for their health or education or for starting a business and other endeavors important to the wealth creator. Your Wells Fargo fiduciary strategist and/or wealth strategist can help you explore the potential advantages of leveraging trusts for education or health savings.
4. Fund a foundation or donor-advised fund
Starting a foundation or donor-advised fund can offer tax benefits, but also provide direction and purpose for family wealth.
“Charitable giving is a great way for families to work together around the idea of giving back in a manner that aligns with the family’s values,” Nakamura says.
If you’re interested in forming a foundation or donor-advised fund, Wells Fargo Wealth & Investment Management offers resources to help navigate through those processes. Talk to your fiduciary strategist to get more information.
5. Consider bringing your advisors together as you plan
As you consult with your tax and legal advisors to determine the appropriate wealth transfer strategy for a values-based legacy, consider including your fiduciary strategist or wealth strategist to help you create a road map.
“We can put structure and form around your estate priorities,” says Nakamura. “Also, don’t overlook the opportunity to talk to your family about what matters to you — and what you hope will matter to them when you’re gone.”
Trust Services are available through Wells Fargo Bank, N.A. and Wells Fargo Delaware Trust Company, N.A.
Wells Fargo & Company and its affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed.
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