5. Invest in resources that transfer financial power from one generation to another
Have you ever heard the phrase ‘trust fund baby’? Its a phrase used to describe a young adult who is living off of money that is paid out to them from a fund their parents or past generations set up for them – usually an irrevocable trust.
Irrevocable trusts have long been an effective vehicle for passing on wealth to future generations because they are not taxed as part of one’s estate and the assets held in the trust are protected from creditors or divorce settlements (revocable trusts do not offer the same protections).
Trusts dont just pass on money – they pass on your values after you ascend by providing a high degree of specificity regarding how, when, and under what circumstances trust assets may be dispersed.
A trust fund is controlled by a person or group of people called trustees. Those trustees manage the fund for the beneficiaries – those who are getting money paid out from the trust on a regular basis. A beneficiary can be family members or non-profit organizations. Some even name public radio as a beneficiary.
For those members of our community who want to support a Black organization, HBCU, or a movement beyond their time on Earth, creating an Irrevocable trust and naming that organization as the beneficiary can keep that organization alive for centuries.
And when it comes to your family, look to Nipsey Hussle for inspiration.
Nipsey Hussle made sure his children were set for life by placing his assets in multiple trusts that would pay them for the rest of their lives. That is how we pass on the wealth we accumulate to the next generation.
The New Blueprint For Building Black Wealth: Buy insurance, maintain a will, and move your assets into an irrevocable trust.
Mandatory Disclaimer: This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought.
If you remember nothing else, remember that this is the path to building Black wealth: Create a surplus of income, convert that income into wealth, and use that wealth to improve the quality of life for yourself, your family, and community.
Once that’s done, then you can upgrade your car.