Multi-Generational Estate Planning Insights
March 15, 2026 • By Carl Lachman, MBA, CFP®, and Dan York, J.D.
A summary of our multi-generational estate planning discussion by Eclectic Associates Vice President Carl Lachman and Attorney Dan York on March 4, 2026.
What Is Estate Planning?
Estate planning involves creating a structured plan that specifies how your property, finances, and personal matters should be handled in the event of your death or incapacity.
It is not limited to financial assets; it also includes decisions about guardianship for minors, healthcare directives, and the management of personal and legal affairs.
What Is a Multi-Generational Estate Plan?
Multi-generational estate planning considers the needs of multiple generations within a family. The trust maker helps ensure the family values and goals are preserved.
Why Should a Family Create an Estate Plan?
Estate planning can do more than allocate assets. It can create a roadmap for how wealth is managed, transferred, and preserved.
Without a clear plan, disputes over inheritance can arise, potentially straining family relationships.
Do We Need an Attorney to Create a Plan?
It is best to engage an experienced estate planning attorney to help you design documents that comply with tax rules and other laws.
What Are Common Goals for Multi-Generational Estate Planning?
Reduce Family Conflict: Have a clear plan to minimize misunderstandings and disputes.
Preserve Wealth: Protect assets from unnecessary taxes and fees, mismanagement, divorce court, probate court, and litigation in general.
Honor Your Legacy: Ensure that your wishes are respected and that your family is cared for.
Where Does One Start?
Discuss your goals, concerns, and priorities with your life partner, who will likely be co-creating an estate plan with you. Find an estate planning attorney who listens and patiently offers options to meet your goals.
Who from a Family Is Involved in This Planning?
Attorney ethics require the attorney to determine “Who is the client?” This tells the attorney where the attorney’s duties of loyalty and confidentiality lie.
Of course, the client will always decide on who to consult, the flow of information, and the final decision-making.
Does Everyone Get a Vote?
No. Only the client and the client’s spouse make final binding decisions about the design of their estate plan.
That said, clients often seek input from others, including professionals, family, and friends.
Is It Just Planning for Us, Our Adult Children, Grandchildren, and Great-Grandchildren?
Not necessarily. It is common for clients to make plans involving parents and grandparents, longtime friends, nonprofit charities and foundations, and favorite nephews, nieces, uncles, and aunts.
What Assets Should Be Included in the Plan?
Real estate, checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), shares of stock, mutual funds, collectibles and jewelry, precious metals, motor vehicles, personal property such as family Bibles, heirlooms, and household items are good starting points. Uncollected promissory notes, oil and gas rights, and other contract rights can also be included.
Are There Assets That Should Not Be Included?
Tax-qualified assets, such as a 401(k), IRA, or 403(b), and certain qualified annuities should not be transferred into your living trust. However, in some circumstances, it is appropriate to name the trust as a death beneficiary after your passing. This depends on the trust's design, tax laws, and your planning objectives.
Any Best Ideas for Keeping Vacation Property in the Family for Future Generations?
Co-ownership or joint use of real estate can be tricky to achieve.
A cabin trust is a legal arrangement that allows a family to manage and preserve a vacation home or cabin for future generations. It places the property and funds for maintenance into a trust or an LLC so that the cabin remains in the family and is used according to the wishes of the original owner.
However, this requires careful drafting to realize tax benefits, fund maintenance costs, and establish management rules.
When Should Assets Be Split Equally Versus Equitably?
Children often assume that parents will distribute estate assets equally. But there may be other factors such as:
The special needs of a disabled child or grandchild
A financially successful child who prefers not to receive an equal share
Contributions made in the form of personal care and labor
Estrangement
Assets that cannot be divided or have greatly fluctuating values
Assets of sentimental value
How Important Is Asset Protection?
Threats to assets come from many directions:
Financial predators
Creditors
Divorce proceedings
State and federal taxes
Lawsuits
Medi-Cal/Medicaid post-death collections against the estate for care provided during life
How Should We Incorporate Gifts and Early Transfers of Assets?
A gifting program can be a legacy lesson to your family and bring you personal satisfaction. Many clients work with planned gifting programs in their favorite charity or church to maximize the impact of the gift and minimize taxes and fees. Early transfers require caution because of capital gains issues.
How Should Healthcare and Caregiving Be Included?
An advanced health care directive coordinated with a general durable power of attorney is important. It is a foundation of health care and planning for each person.
How Should We Include the Right to Make Decisions and Determine When Someone Should Make Those Decisions for Us?
“Incapacity” is the legal term. The trust and the general durable power of attorney should include a clearly written set of instructions approved by the client for determining when financial management and decision-making should be transferred. This is a very personal design decision.
How Do We Best Communicate Our End-of-Life Wishes?
California law provides multiple ways to do this:
The advance health care directive
Power of attorney for health care
Physician orders for life-sustaining treatment (POLST) form approved by law to provide detailed instructions for the care of those with serious chronic or terminal conditions
Spoken or written instructions from the patient
How Do We Determine the Right Person to Make End-of-Life Decisions for Us?
Choose a health care agent who understands:
Your values
Your habits
Your beliefs and convictions
Who and what bring you comfort and joy
Also, consider the temperament and reliability of your chosen agent. And be sure they consider the feelings of everyone in your close circle. Communication is important.
When Should We Include Family Members in the Planning?
There are wide differences of opinion on this. Many people are raised to keep finances private. But this can make it difficult to share plans with your chosen successor trustees and agents.
If you are going to eventually rely on others for help, make sure they understand the job and are willing and able to take it on. You may find they have some excellent planning ideas.
Is It Helpful to Talk About Our Estate Plan, or Does It Just Cause Arguments?
If you intend to make a planning decision that will not be well received, consider bringing it into the open while you are alive. It gives people time to absorb it rather than to argue after your death about a shocking surprise. Also, you may change your mind or consider an alternative path forward. On the other hand, avoid giving your family the impression that once the decision is made, it is set in stone.
Which Decisions Should We Make Alone, and Which Decisions Should We Make with our family?
You should consider discussing your feelings and choices about the end of life with those closest to you. This avoids uncertainties and friction between family members when you can no longer speak for yourself. Asset decisions can be more difficult.
How Should We Express Our Values and the Legacy We Wish to Leave in an Estate Plan?
You can express your values and your desired legacy in the way you give your talents, time, treasure, and attention. This could be expressed in written notes or letters included with your plan, arrangements of your memorial service, or in your planned giving.
Is It a Good Idea to Incorporate Values and Legacy in an Estate Plan?
This depends on your individual temperament. Some people prefer to let their lives and deeds do the talking. And others prefer to express themselves after their passing.
What Are Common Pitfalls We Should Look Out for?
Some pitfalls include:
Having a lack of clear communication
Failing to periodically review and update the plan
Failing to retitle assets to the trust
Not educating the next generation
Neglecting philanthropic goals
Being inflexible in changing wealth management strategies