How to Build Generational Wealth (Without Winning the Lottery)

When I was a kid, my grandparents had a phrase they loved to throw around: “Shirtsleeves to shirtsleeves in three generations.” At the time, I figured it was just one of those old-timey sayings like “Don’t count your chickens before they hatch” or “Don’t touch the thermostat.” But as an estate planning attorney in Lake County, Illinois, I see the truth of it every day. Wealth is hard to build—and even harder to keep.

So, how do you make sure your hard-earned success doesn’t disappear and build generational wealth faster than a plate of holiday cookies at a family gathering? Here are the key steps to building—and keeping—generational wealth.

1. Start with a Rock-Solid Estate Plan

Generational wealth doesn’t happen by accident. Without a proper estate plan, your assets could be tied up in probate, eaten up by taxes, or—worst case scenario—cause an all-out family feud that makes Thanksgiving dinner permanently awkward.

A well-crafted estate plan includes a will, trusts, and powers of attorney. Trusts, in particular, can help ensure that your wealth is preserved and distributed according to your wishes—rather than being squandered by an heir who just discovered high-risk cryptocurrency investing.

2. Teach Financial Literacy (So Your Kids Don’t Blow It)

If you’ve ever handed a teenager a $20 bill and watched them return with nothing but a questionable fast-food receipt, you know financial literacy isn’t automatic. Teaching your children (and grandchildren) about money management, investing, and smart spending is key to making sure your legacy lasts.

Set up a family meeting to discuss financial planning, responsible investing, and the importance of preserving wealth. If done right, this meeting can be more productive than those Monopoly games where someone inevitably flips the board.

3. Use Business and Real Estate to Your Advantage

Many of my clients in Lake County build generational wealth through businesses and real estate investments. A well-structured business succession plan ensures that your hard work doesn’t crumble when you step away.

Similarly, investing in real estate—especially income-generating properties—creates long-term assets that can provide for future generations. A property that appreciates in value and generates rental income? That’s a gift that keeps on giving (unlike that fruitcake your aunt insists on sending every year).

4. Minimize Taxes (Legally, of Course)

The IRS has a way of showing up at the worst times—like when your family is grieving. Estate taxes and capital gains taxes can significantly chip away at the wealth you’ve worked so hard to accumulate. Smart strategies, such as gifting assets strategically, setting up irrevocable trusts, and leveraging tax-advantaged accounts, can help preserve more of your estate for your heirs.

This is where having an experienced estate planning attorney (ahem) comes in handy. We know how to structure your assets in a way that keeps Uncle Sam from taking more than his fair share.

5. Keep It Updated (Because Life Happens)

Estate plans aren’t a “set it and forget it” deal. Marriage, divorce, new children, business changes, and even changes in tax laws can all impact your plan. It’s important to review your estate plan every few years (or whenever major life events occur) to make sure it still aligns with your goals.

Secure Your Legacy Today

Building generational wealth isn’t just about accumulating money—it’s about ensuring financial security and opportunities for your loved ones long after you’re gone. If you’re ready to take the next step in securing your legacy, let’s talk. As an estate planning attorney in Lake County, Illinois, I can help craft a plan that keeps your wealth where it belongs—in your family.

Schedule a consultation today, and let’s make sure your legacy lasts longer than a viral TikTok trend.