Protecting Generational Wealth

Securing Your Legacy: How to Protect Generational Wealth in the Era of the Great Wealth Transfer

A massive transfer of wealth is underway, and it’s reshaping families, financial institutions, and estate planning strategies alike. Over the next two decades, an estimated $68 to $84 trillion will move from Baby Boomers to their spouses, children, and grandchildren. With Boomers holding more than half the nation’s wealth, and the youngest among them now in their early 60s, the Great Wealth Transfer has already begun.

A majority of Millennials (55%) and a sizable portion of Gen Z (41%) expect to receive an inheritance in the next five years. That may take the form of real estate, business equity, investment portfolios, or even digital assets. But without thoughtful planning, even well-intentioned transfers can be tarnished by taxes, legal claims, or family conflict.

The question isn’t just what you’ll leave behind but rather how you’ll protect it.

Fortunately, families may have options to help safeguard their legacy without sacrificing control. Tools like Limited Liability Companies (LLCs) and spendthrift trusts are commonly used to bring structure to the planning process and address common challenges in preserving generational wealth.

Why Wealth Often Fails to Last

Studies suggest that 70% of families lose their wealth by the second generation, and 90% by the third. The reasons are almost always structural: no clear plan, no guardrails, or no transfer of knowledge alongside the transfer of assets.

Without proactive steps, wealth becomes vulnerable to:

  • Probate delays and public exposure
  • Legal claims or creditor disputes
  • Misaligned family interests
  • Estate tax erosion

Protecting generational wealth often involves more than a will. Many families explore legal structures like LLCs to help support long-term planning.

Why LLCs Are the Backbone of Modern Wealth Protection

A Limited Liability Company (LLC) is one of the most powerful and flexible tools for preserving family wealth, especially in a state like Wyoming, where privacy laws and asset protection statutes are among the strongest in the country.

Unlike a will, which transfers ownership at a point in time, an LLC allows for ongoing management and control. It may be possible to transfer economic interest to heirs over time while maintaining decision-making authority as the managing member, depending on how the LLC is structured and governed. This is especially useful for:

  • Holding real estate or rental properties
  • Managing family investment accounts
  • Protecting digital or high-value personal assets
  • Preserving family business ownership

Imagine a family that owns multiple rental properties across several states. By placing those properties in a Wyoming LLC, they can centralize management and insulate each property from the liabilities of the others. If one property is sued, the others remain protected, and the family avoids unnecessary exposure.

In Wyoming, privacy is an added benefit: members and managers aren’t publicly disclosed, and entity details are kept public records, offering an extra layer of protection from creditors, litigants, or prying eyes.

When thoughtfully structured, an LLC can help support continuity and long-term oversight of family assets.

Pairing an LLC with a Trust: When More Protection Is Needed

Some families with complex assets or long-term concerns explore pairing an LLC with a Wyoming Spendthrift Trust as a way to build additional layers of protection.

This type of irrevocable trust separates legal ownership from access, shielding assets from:

  • Creditors and lawsuits
  • Future divorce proceedings
  • Irresponsible or inexperienced heirs

In Wyoming, the benefits go even further:

  • The trust can last up to 1,000 years, ensuring stability for future generations
  • It’s private—not filed with the state
  • The grantor may retain influence via an Investment Advisor LLC while still preserving creditor protection

When used together, the trust owns the LLC, and the LLC holds the assets. This structure creates a robust, legally sound foundation for multi-generational wealth.

Estate Planning in 2025 and Beyond: Why Timing Still Matters

The One Big Beautiful Bill Act has permanently increased the federal estate and gift tax exemption to $15 million per person starting in 2026, indexed for inflation. While this removes the urgency of a 2025 deadline, it also creates new opportunities.

For individuals and families who delayed planning in hopes of clarity, this policy change delivers it. The increase gives families a larger planning window and a rare chance to future-proof their wealth before the political landscape shifts again.

The increased exemption amount may give families more flexibility in their planning. Those who have used their exemption previously may want to consult their tax advisor to understand how these changes could apply.

Some families are considering whether to transfer high-value assets into LLCs during this window, in consultation with their advisors, to align with the expanded exemption while maintaining control and privacy.

How WCS Can Help

At Wyoming Corporate Services, we help families and their advisors form business entities to protect and preserve wealth.

Our services include:

  • LLC formation in all 50 states, with a focus on privacy-first Wyoming entities
  • Custom Wyoming Spendthrift Trust packages, including Trust Company setup, Investment Advisor LLC, and Beneficiary LLC
  • Ongoing support, including mail forwarding, compliance filings, and nominee services

Every family structure is different. That’s why we tailor our solutions to fit your specific needs, whether that’s holding a single asset or building a multi-entity legacy plan designed to evolve over time.

Whether you need to hold one property or build a legacy structure that spans generations, we’re here to make it easy and effective.

Let’s Talk About Your Legacy

You’ve worked hard to build something meaningful. Now it’s time to protect it. Let’s build a structure that helps it last.

Call us at 1-307-316-1912 or email info@wyomingcompany.com to schedule a complimentary consultation with Wyoming Corporate Services today.

This content is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult with a qualified attorney or tax professional before making decisions about entity formation, trust structures, or wealth planning.

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