Most people think about financial planning in terms of their own lifetime retirement, savings, maybe college for the kids. But for families with more complex goals, financial planning can and should extend much further than that.
Multigenerational wealth planning is the practice of building a financial strategy that works not just for you, but for your children, your grandchildren, and potentially generations beyond that. It connects the financial decisions you make today with the legacy you want to leave behind.
Here’s what it actually involves and why an increasing number of New Jersey families are making it a priority.
What Multigenerational Wealth Planning Actually Means
At its core, multigenerational wealth planning is about building, managing, and preserving family wealth over a long time horizon. Studies on intergenerational wealth transfer consistently find that approximately 70% of wealthy families lose their wealth by the second generation, and 90% by the third, most often not because of poor investment decisions, but because of a lack of coordinated planning.
That means thinking beyond your own retirement to consider how assets will be managed, transitioned, and safeguarded as they pass from one generation to the next. It involves coordinating a wide range of financial disciplines, including investment management, estate planning, insurance, tax strategy, business succession, and college planning with a consistent long-term vision in mind.
ICG next’s comprehensive planning process is designed to address the distinct needs of every generation in a family, from planning for a child’s education to managing a parent’s retirement to preserving assets for heirs.
Who Needs a Multigenerational Plan?
Multigenerational planning isn’t reserved for the ultra-wealthy. According to the Federal Reserve’s 2022 Survey of Consumer Finances, median household net worth for Americans aged 55-74 ranges from approximately $364,500 to $409,900, meaning a substantial share of American families face real exposure to probate costs, beneficiary designation errors, and avoidable estate liabilities without structured planning.
ICG next serves clients across a wide range of backgrounds, including business owners, physicians, attorneys, engineers, and corporate executives, as well as families at various life stages, from young families just beginning to build assets to retirees focused on preservation and legacy.
The Key Components of a Multigenerational Plan
A well-constructed multigenerational plan typically addresses several interconnected areas. Wealth management forms the foundation building a portfolio that is aligned with both short-term needs and long-term objectives, with appropriate asset allocation and risk management throughout.
Estate and legacy planning ensures that assets transfer efficiently and according to your wishes. J.P. Morgan identifies the essential components as comprehensive legal documentation (wills, trusts, powers of attorney, health care directives), succession planning for family businesses or properties, and ongoing family communication to keep everyone aligned.
Risk management through life insurance, disability income insurance, and long-term care planning helps manage risk within the plan itself. If a disability or death occurs, the right coverage is designed to help keep the financial strategy you’ve built on track. This is an area where families frequently underestimate their exposure until it’s too late to address it cost-effectively.
Tax strategy runs underneath all of it. Decisions around retirement account distributions, investment vehicles, and estate structures all carry tax implications that compound over time. A multigenerational approach incorporates tax awareness at every stage rather than treating it as an afterthought.
For families with younger members, college planning is another key component helping parents and grandparents structure education funding in a way that aligns with broader wealth-building goals rather than working against them.
The Role of the Advisor in a Multigenerational Relationship
One of the most important elements of effective multigenerational planning is the advisor relationship itself. A plan that spans decades and multiple family members requires an advisor who gets to know the family their values, their goals, their dynamics, and their financial picture in full.
This is why ICG next emphasizes ongoing stewardship rather than transactional advising. The firm maintains an advisor-to-client ratio of 125 to 1 compared to an industry average that exceeds 400 to 1, which makes ongoing, personalized engagement possible across a family’s full financial picture.
The firm also maintains a formal written succession plan, helping ensure that if an advisor transitions out of the business, clients continue to receive the same level of service and quality of advice without disruption.
Common Challenges Families Face Without a Multigenerational Strategy
Without a coordinated plan, several predictable challenges tend to emerge. Beneficiary designations that haven’t been updated in years can override a carefully written will. Assets that could be transferred efficiently end up generating unnecessary liability. Insurance gaps leave families financially exposed at the worst possible moment. Business interests pass without a clear succession structure, creating conflict and loss of value.
Research from Truist suggests that poor preparation of future generations investment decisions is often the primary factor behind failed wealth transfers. In fact, less than 3% of multigenerational wealth failures are attributed to poor estate planning or investment returns alone.
Starting the Conversation
Multigenerational wealth planning often begins with a single honest conversation about what you actually want for your family. Not just what you want to accumulate, but what you want your financial legacy to look like. What values do you want it to reflect? What do you want your children and grandchildren to inherit beyond money? What burdens do you want to spare them?
At ICG next, the planning process is designed around exactly that kind of discovery: understanding what matters most before building a strategy to pursue it.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Asset allocation does not ensure a profit or protect against a loss. All investing involves risk.
ICG Next and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.
