How to Transfer Wealth to the Next Generation

Estate planning isn't just about passing on wealth It's about ensuring your plan adapts to changing tax laws and personal circumstances. Here are key strategies to infuse flexibility into your estate plan: 1. Powers of Appointment : Allow beneficiaries to redirect assets based on future needs. 2. Trust Protectors : Appoint someone with broad powers to adjust trustees, governing laws, or trust terms. 3. Progressive Trust Jurisdictions : Set up trusts in states with favorable, adaptable trust laws. 4. Loan & Swap Provisions : Enable asset repositioning for tax efficiency. 5. Estate Tax Repeal Contingency : Plan for scenarios where estate tax may be eliminated while maintaining basis adjustment benefits. Flexibility ensures your legacy remains protected, no matter how the laws change. Make sure your estate plan is built for the future!

How to Build Generational Wealth in the Oil & Gas Industry Building wealth is one thing—keeping it for generations is another. Many businesses in the oil and gas industry thrive for a season but fail to transition into lasting legacies. Why? Because wealth without structure fades. The Key to Generational Wealth: Sustainability Over Short-Term Gains 1️⃣ Ownership Matters – Owning assets, whether in real estate, equipment, or equity, ensures long-term value. Leasing everything might keep you agile, but ownership builds wealth over time. 2️⃣ Reinvest, Don’t Just Spend – The revenue from a booming oil and gas business should be reinvested into expansion, technology, and human capital. Growth comes from compounding success, not extracting profits too soon. 3️⃣ Build Beyond One Generation – If your business dies with you, it was just a job. Teach financial literacy and strategic decision-making to the next generation early. Wealth is a mindset, not just a balance sheet. 4️⃣ Diversification is Key – The industry is cyclical. Invest in other sectors—energy transitions, real estate, or tech—so when oil and gas slows, your wealth doesn’t. 5️⃣ Governance & Structure – A family business without structure turns into a family dispute. Have a clear succession plan, legal framework, and leadership transition strategy. 🔹 True wealth is not what you make but what you leave behind. Are you building a legacy or just making money? What are your thoughts on ensuring long-term financial security in our industry? Drop your insights in the comments. 👇 #WealthBuilding #GenerationalWealth #OilAndGasLeadership

💭 What If Your Family’s Legacy Depended on Information You Didn’t Even Know You Needed? Imagine the loss of a family leader, only to realize that crucial details about assets, values, and goals are scattered, incomplete, or entirely missing. For multi-generational families, managing wealth is more than tracking assets; it’s about safeguarding legacy. But without structured documentation, families often face a “we don’t know what we don’t know” dilemma, leading to stress, inefficiencies, and sometimes lost opportunities. A Family Owner’s Manual isn’t just about estate planning—it’s about preserving the “why” and “how” behind family decisions and values. This guide creates continuity, offering future generations the clarity they need to understand both assets and the intentions that define the family legacy. Consider These Key Elements: ➡ Transparency: Make information accessible for better decision-making. ➡ Education: Empower family members with the “big picture.” ➡ Continuity: Ensure future generations have a roadmap, not just for assets but for family values. Here are three practical steps to help your family build a guide that captures both wealth and wisdom: 1️⃣ List Essential Documents: Create a checklist of all vital financial, legal, and personal documents and their locations. 2️⃣ Define Family Values: Capture principles and goals that shape your family’s identity. 3️⃣ Leverage Technology: Software solutions, often developed by Family Office experts, provide tools to centralize information, streamlining legacy planning and simplifying organization. “A Family Owner’s Manual is more than estate planning—it’s legacy planning.” Whether you’re a family member or advisor, understanding the importance of capturing these details is crucial. By proactively documenting key information, families can avoid stressful scenarios, achieve peace of mind, and focus on a legacy that goes beyond wealth.

The recently passed "One Big Beautiful Bill" (OBBB) introduces substantial tax benefits, creating valuable opportunities for family offices and real estate investors focused on preserving and growing wealth. Understanding and acting on these changes can significantly improve your investment strategy and offer lasting financial advantages: • Permanent 20% QBI Deduction: Provides long-term tax savings for pass-through entities, increasing profitability and investment potential. • Permanent 100% Bonus Depreciation: Enables immediate deductions on property improvements and tangible assets, significantly improving cash flow. • Increased Estate and Gift Tax Exemption: Exemption limits have increased to $15 million per individual ($30 million per couple), simplifying the transfer of generational wealth. • Expanded SALT Deduction: The limit for State and Local Tax (SALT) deductions, including property and income taxes, rises from $10,000 to $40,000 starting in 2025. Full benefits apply only to individuals with modified adjusted gross income (MAGI) below $500,000 (or $600,000 for joint filers). Above those levels, the deduction gradually phases out, ultimately reverting to $10,000 once income reaches approximately $600,000. • Enhanced Affordable Housing Incentives: A 12% increase in Low Income Housing Tax Credits makes affordable housing investments more financially attractive. Investors can achieve stronger yields while contributing to community development and meeting ESG objectives. These provisions offer more than incremental tax savings. They create strategic financial opportunities for real estate investment and wealth transfer planning. Are you prepared to take full advantage of these new tax opportunities? Now is an ideal time to review your investment and estate strategies. Taking action today can secure financial benefits for years to come.

I've been reading a lot about generational wealth, UHNW (ultra high-net-worth individuals), family governance, wills, and trusts. Here are some things I found fascinating: → There are firms and conferences that cater to UHNW, teaching money values to children. It’s also a place for those children to meet others like them. A top fear of UHNW is to raise spoiled kids. → Most UHNW pass on inheritances when they die — when their kids are in their 60s or 70s! What a waste. Money is more meaningful in your 30s/40s. New, more sophisticated UHNW are giving money earlier. → Lots of UHNW try to “control from the grave,” making trusts dependent on marriage, occupation, religion, etc. I used to see this as a no-brainer for inheritance ("it's my money, I'll set the rules"). I changed my mind about this. I plan to have much, much looser rules. → Sophisticated families have formal meetings about wealth stewardship, family culture, philanthropy, and family governance. They run the financial part like a business because it is — a multi-generational business where values and culture matter enormously. → It’s common for wealthy parents to leave an estate with no clear inheritance plan, and it’s always a disaster. Kids fight over the house and never talk again. Make a plan and discuss it with your kids while you’re alive. It's not morbid, it's planning. Everybody dies. → It’s common for parents to bequeath more money to a struggling child. This is a recipe for disaster. “Why does he get more? I did everything right and became a doctor. Now I’m being punished for it.” I didn't realize this and now have totally changed my mind. → There are lots of techniques to “equalize” inheritance to kids. For example, if you help someone in their 20s with a down payment, you can adjust the will, factoring in appreciation. This is a solved problem. Attorneys can guide you. → People do not suddenly know how to deal with millions of dollars. It’s important to start teaching children with small amounts and money lessons. As they mature, there’s larger and larger amounts and higher stakes. Let them understand the consequences of good/bad decisions. Do not shield them. My dream for my parents (not UHNW) is to spend every last cent. We don’t want their money, we want them to have an amazing life! What generational wealth / UHNW insight surprised you the most and why?