S3, Episode 3: Guardianship, trusts, and building generational wealth with Portia Wood
In this episode, Portia and I discuss
Why should parents plan for guardianship of their children?
As a parent, it’s your responsibility to make these decisions.
If we don’t, we are leaving it up to the court system.
This is a way to care for our children.
What is the process of setting up guardianship for children?
There are two types of guardianship
The first type is emergency guardianship
This is a signed and notarized form giving legal authority to another person over the children
Permanent guardianship is listed in your will
After turning eighteen, people should have a baseline will.
When someone is pregnant, they should plan
What about a trust or a living trust?
Living trusts protect an estate and keep it out of court
Trusts are also for multi-generational planning
This can be a way to teach and instill values in your children
You can provide money for travel or higher education
When should you set up a trust?
It depends on your asset levels.
If you don’t have a lot of assets, you can try a testamentary trust, which is a will that can become a trust for your children
Where should parents start - no matter their income - if they want to build generational wealth?
It starts with reframing our ethos of “wealth.” You don’t need to wait until you have millions of dollars
Research shows $10,00 is the starting point for wealth.
Things to consider are taxes, financial literacy, and restrictions to keep the wealth.
Money needs three things to grow
Investment
Time
Protection
Start with baby steps. Start now.
What are your favorite resources?
Enjoy the episode!
Portia is a generational wealth planning attorney. Based in Los Angeles, she leads Wood Legal Group, LLP, an African American woman-owned and operated law firm specializing in estate planning, probate, and elder law that she runs with her mother and law partner, Robin Wood. They are passionately focused on helping all families grow and protect wealth by being a trusted resource for accurate information and comprehensive, culturally competent estate planning. Learn more at woodlegalgroup.com.
