Building Generational Wealth: How to Protect What You’ve Built for the Next 100 Years
Welcome to M&M Wealth Associates
At M&M Wealth Associates, we believe real wealth isn’t measured by the size of your portfolio—it’s measured by the impact you make across generations. As Certified Retirement Counselors with over 100 years of combined experience, our goal is simple: help clients pay less in taxes and create lasting financial legacies through thoughtful, values-driven planning.
Founded by Michael Henry and Matthew Wu, our firm is built on responsibility, integrity, transparency, empathy, and ethics. We’ve helped thousands of high-earning families move from short-term financial thinking to long-term wealth preservation—with guidance trusted by over 230,000 followers on social media.
Most Fortunes Vanish by the Third Generation—But the Rockefellers Did It Right
It’s a sobering statistic: 70% of wealthy families lose their wealth by the second generation. By the third, that number rises to 90%. Why? A lack of education, planning, and values passed down with the money.
The Rockefellers, however, beat those odds—seven generations strong and counting. How?
- They created multi-generational trusts to pass wealth efficiently.
- They emphasized family governance, teaching each generation how to steward—not just spend—the wealth.
- They used life insurance and estate planning tools to minimize taxes and maximize control.
You don’t have to be a Rockefeller to apply these principles. You just need a strategy—and a commitment to more than your own lifetime.
How Do You Want to Be Remembered?
At some point, the money becomes secondary. The real question is: What will your wealth stand for?
- Will it represent a life of hard work and values passed on with pride?
- Or will it be an inheritance your family spends without guidance, clarity, or meaning?
Whether you leave behind $500,000 or $50 million, your legacy is shaped by the intentionals behind it. And without that planning, your life’s effort can dissolve within a single generation.
We ask our clients, “How long do you want your financial impact to last?” That answer guides everything we do.
Family Values Should Outlast Family Wealth
If you want to pass on more than money, you need to start with values.
At M&M, we often see clients who are financially successful—but overwhelmed by questions like:
- “Will my kids know what to do with this money?”
- “How can I avoid spoiling them?”
- “How do I make sure this helps, not harms, the next generation?”
Generational wealth planning means thinking in decades, not just quarters. It means designing a legacy that supports your family’s education, entrepreneurship, homeownership, and charitable giving goals—without enabling bad habits.
Yes, Generational Wealth Can Be Complicated—But That’s Why We Exist
Wealth transfer is a complex, high-stakes process that involves taxes, legal structures, family dynamics, and timing. Without professional guidance, even modest estates can become legal and tax nightmares.
Key tools we use with clients include:
- Wills and Living Trusts to establish clear inheritance instructions
- Irrevocable Life Insurance Trusts (ILITs) to remove insurance proceeds from taxable estates
- Charitable trusts and family foundations to align with philanthropic goals
- Family meetings to discuss legacy plans in a way that builds unity, not resentment
The earlier you start, the more options you have. And the smoother the transfer becomes.
Life Insurance + ILITs: Protecting Wealth From Estate Taxes
Life insurance, when used strategically, can be a cornerstone of generational wealth—and ILITs make it exponentially more powerful.
Here’s how it works:
- A permanent life insurance policy is owned by an ILIT, not you.
- Upon your death, the death benefit is paid tax-free to the trust.
- That money can be used to pay estate taxes, debts, and even provide income to heirs for decades.
This strategy ensures your family keeps what you intended, rather than watching large portions disappear to the IRS. It’s one of the most efficient ways to create liquidity without taxation.
Premium Financed Life Insurance: Magnifying Your Legacy
For affluent clients who want to create tens of millions in estate-tax-free wealth, premium financing can be a powerful solution.
Here’s the basic idea:
- A lender pays the premiums on a large life insurance policy (often $5M–$25M+ in death benefit).
- You pledge collateral or use other assets for security.
- At death, the policy repays the loan, and the remaining benefit is passed to heirs tax-free.
This strategy allows you to preserve your own capital while still leveraging the incredible tax advantages of life insurance.
But it’s complex—and not for everyone. That’s where seasoned guidance matters.
Sometimes Legacy Just Means Financial Security for Your Loved Ones
Generational wealth isn’t always about creating billion-dollar foundations. For many, it’s about peace of mind—knowing your family will be okay if you’re no longer here.
That might mean:
- Replacing your income so your spouse doesn’t have to sell the house
- Ensuring your children can attend college debt-free
- Paying off a mortgage or providing startup capital for a business
Even a modest life insurance policy can create a bridge that ensures your family’s future isn’t derailed by tragedy.
Understanding Estate Taxes and Gift Exemptions
As of 2025, the federal estate tax exemption is around $13.61 million per individual (or $27.22 million for married couples). However, this is set to sunset in 2026 and may be cut in half unless legislation changes.
Key tactics to consider:
- Annual gift exclusion: You can give up to $18,000 per person per year (2024) without triggering taxes.
- Lifetime gift & estate exemption: Use it strategically to move wealth out of your estate while you’re still alive.
- Grantor Retained Annuity Trusts (GRATs), Charitable Lead Trusts (CLTs), and other advanced tools can help mitigate estate tax exposure.
Proactive planning now can mean the difference between keeping 90% of your wealth—or losing 40%+ to taxes.
FAQs
Q: Do I need millions to start building generational wealth?
No. Generational wealth is about planning, not just net worth. Even with $500K–$1M in assets, the right structures can protect and grow your legacy.
Q: How early should I start estate planning?
As early as possible. The best time to start was yesterday—the second-best time is today. More time = more flexibility and efficiency.
Q: What’s the risk of not using an ILIT?
Life insurance owned personally is included in your estate. That means your heirs could lose up to 40% of the death benefit to estate taxes unnecessarily.
Q: Is premium financing risky?
It can be, if done incorrectly. But with the right structure, lender, and financial discipline, it’s a low-risk way to amplify your legacy without large out-of-pocket costs.
Let’s Talk: Complimentary MoneySmart Consultation
If any of this resonates with you, we invite you to schedule a MoneySmart Consultation with us. It’s completely complimentary, and if we’re not the right fit for your needs—we’ll tell you upfront.
No pressure. No sales games. Just honest advice from advisors who’ve built their careers on trust and transparency.