The "Great Wealth Transfer" is underway, with trillions of dollars expected to move from Baby Boomers to their heirs over the coming decades. Affluent families in Denver increasingly recognize the need for a structured approach to preserving and growing wealth across generations.

Multigenerational wealth planning addresses the unique needs of each generation, creating a lasting legacy that supports family priorities and financial security for the future.

Core elements include:

• Inheritance planning: Structuring the transfer of wealth to minimize taxes and administrative burdens while honoring family intentions. This often includes trust structures, beneficiary planning, and other tools to help assets pass seamlessly to the next generation.
• Family governance: Establishing family policies and structures to guide decision-making and maintain a shared vision. Family governance creates a framework for responsible financial stewardship, reducing potential conflicts and aligning the family with long-term goals.
• Value continuity: Integrating family values into financial decisions, whether through charitable giving, ethical investing, or asset protection. This approach ensures that family values are preserved and reflected in each generation's decisions, fostering a legacy that resonates and endures.

This starts with a detailed financial plan that should be a "living document," evolving with your family's changing needs and circumstances. Regular reviews and updates are critical to keeping your plan matched with your goals and responsive to shifts in family dynamics or external conditions.

Jupiter Wealth's financial planners in Colorado bring decades of experience helping Denver families develop multigenerational wealth plans that address the complexities of wealth transfer.

Asset protection involves strategies to safeguard wealth from various risks, forming a key component of high-net-worth financial planning. This includes protecting financial assets (stocks, bonds, savings), real estate, intellectual property, and business interests—each with its own risks.

A solid protection plan mitigates common threats like lawsuits, creditor claims, economic downturns, and unexpected healthcare costs. Affluent individuals are often more exposed to litigation, making these strategies necessary for reducing risk.

For high-net-worth families in Denver, where substantial assets may include real estate and business interests, effective asset protection can reduce vulnerability, providing security and continuity for family needs.

Key asset protection tools include:

• Living and irrevocable trusts: These trusts are used to protect assets while allowing for structured wealth transfer. For example, irrevocable trusts can shield assets from certain liabilities, offer tax benefits, and maintain control over distribution.
• Liability insurance: Adequate insurance coverage, including umbrella policies and excess liability insurance, can mitigate risks associated with property ownership, business ventures, or other potential claims.
• Entity structuring: Forming entities like LLCs or family limited partnerships (FLPs) can protect personal wealth from business-related risks. These structures can separate personal assets from business interests, creating an additional layer of protection.
• Prenuptial agreements: Though often a delicate topic, prenuptial agreements provide a clear outline for asset division in the event of divorce. They protect personal wealth, clarify financial boundaries for both partners and, with guidance from an experienced attorney, support fairness and legal compliance.

Asset protection creates a legal shield against potential claims from lawsuits or creditors while enhancing tax efficiency. These proactive strategies fortify your family's financial foundation by anticipating financial risks. Ultimately, they preserve wealth and provide stability for future generations.

Jupiter's experienced wealth managers in Denver are here to help you assess your current asset protection strategies and identify any gaps that need attention.

Tax planning within a multigenerational framework requires advanced strategies and must factor in family goals while minimizing tax liabilities wherever possible.

Some effective tax strategies include:

• Estate tax minimization: Estate taxes can greatly affect wealth transfer, with federal rates reaching as high as 40%. Tools like irrevocable life insurance trusts help reduce the taxable estate size, easing the tax burden on heirs.
• Tax-advantaged accounts: Contributing to employer-sponsored retirement plans and self-employment accounts like SEPs and Solo 401(k)s can help you manage taxable income while saving for retirement.
• Roth strategies: Roth conversions have no income restrictions and allow retirement funds to pass tax-free to beneficiaries. Also, backdoor Roth IRAs enable high-income earners to contribute to Roth accounts indirectly, further expanding tax-free growth opportunities.
• Capital gains planning: Strategically managing investment gains and losses while considering the wash sale rule can optimize tax savings. Holding assets for at least 12 months allows them to qualify for long-term capital gains tax treatment, typically lower than short-term rates.
• Asset placement: Choosing the right accounts based on the tax treatment of various investment incomes is key to maximizing tax efficiency. For example, placing qualified dividend investments in taxable accounts and using tax-free municipal bonds can reduce tax exposure. Meanwhile, holding appreciating assets in tax-advantaged accounts can limit tax liabilities.
• Tax-efficient real estate strategies: If you have substantial real estate holdings, strategies like 1031 exchanges allow for deferral of capital gains taxes on investment property sales, preserving capital for reinvestment. Also, placing real estate in family limited partnerships (FLPs) or trusts offers both tax benefits and asset protection.
• Gifting: Appreciated assets like art, property, or stock can be gifted to family members to avoid capital gains tax and reduce the taxable estate size, allowing wealth to be passed down in a tax-efficient manner.

Jupiter Wealth's expert Denver wealth management can integrate these strategies into your investment portfolio, benefiting you and your family with proactive tax planning.

For high-net-worth families, portfolio management goes beyond a simple buy-and-hold strategy. It involves navigating complex factors like market volatility, tax efficiency, and value alignment to create investment plans that balance risk and reward while supporting multigenerational goals.

Diversification for Stability and Growth

True diversification extends beyond a traditional mix of stocks, bonds, and cash. For affluent families, it includes a range of asset classes—different types of securities like large-cap stocks, small-cap stocks, corporate bonds, and government bonds, alongside varied investment styles such as growth, value, and income strategies.  

Jupiter's Denver investment advisors offer access to top-tier hedge funds, private equity services, and other alternative investments, which can provide unique opportunities to balance risk.

Asset Allocation

Diversifying across different types of investments is one part of the equation; the other is how these assets fit together—a process that involves various asset allocation models.

Large investment portfolios benefit from a specialized mix designed to meet specific needs, offering stability and flexibility as financial goals evolve. Asset allocation is essential for building a portfolio that aligns with your family's goals and risk tolerance.

Aligning Investments With Family Values

For many affluent families, a portfolio isn't complete unless it reflects their personal values. Ethical and impact investments, such as environmental and socially responsible funds, allow families to grow wealth while supporting causes they care about.

Jupiter's wealth managers in Denver can help you identify investments that match your values, making it possible to pursue financial returns while contributing positively to society.

Adapting to Multigenerational Needs

Each generation in a family may have different financial priorities. Younger members might focus on growth-oriented investments, while older members may prioritize stability and income. Recognizing these differing views is vital for productive financial discussions within a multigenerational family. By understanding and respecting each other's priorities, families can develop a cohesive financial strategy that meets the needs and goals of all involved.

Jupiter's Denver wealth management professionals approach asset management with a disciplined, conservative philosophy and build robust investment portfolios that honor your family's values.

Family office services provide a comprehensive wealth management solution for the unique needs of affluent families. These services are designed to manage, preserve, and grow wealth across generations.

Typical offerings include:

• Estate and succession planning: Structuring the transfer of wealth to future generations, often utilizing trusts, wills, and other legal instruments to facilitate smooth transitions.
• Tax planning and compliance: Crafting tax-efficient strategies and adherence to local, state, and federal tax regulations to minimize liabilities and optimize after-tax returns.
• Investment management: Developing and overseeing diversified investment portfolios align with family goals and risk tolerance.
• Philanthropic advisory: Assisting in the development and management of charitable initiatives with the family's mission and values.
• Family governance and education: Implementing structures and processes to guide family decision-making, resolve conflicts, and educate younger generations on financial stewardship and the responsibilities of wealth.
• Risk management and insurance: Identifying potential risks and securing appropriate insurance coverage to protect family assets and interests.
• Administrative and concierge services: Managing daily financial affairs such as bill payments, financial reporting, and coordinating personal services, including travel arrangements and property management.
• Legal services: Providing access to legal expertise for family business operations, contracts, and regulatory compliance matters.
• Lifestyle management: Assisting with the acquisition and management of luxury assets, such as art collections, yachts, and private aircraft, to support the family's lifestyle and investment goals.

These services are typically highly customized to meet each family's specific needs and goals.

Your time is valuable, and Jupiter's multi-family offices help you focus more on what matters most to you. We assist in coordinating all aspects of your financial life, leveraging a team of specialists to enhance your lifestyle while our family office services manage your daily financial tasks.

Among Denver's affluent families, charitable giving has become a meaningful way to connect family values with positive change. As an essential part of multigenerational wealth management, legacy planning can inspire a culture of giving, strengthen social bonds, and promote happiness and fulfillment—benefits that enrich both personal and family life.

Key philanthropic strategies include:

• Charitable trusts: Options like charitable remainder trusts and charitable lead trusts allow families to give back while potentially benefiting from tax advantages. These trusts can be structured to provide family members with income over time, with remaining assets eventually going to charitable causes.
• Qualified Charitable Distributions (QCDs): For individuals aged 70½ and older, qualified distributions from IRAs can be made directly to charities, providing a tax-efficient way to meet required minimum distributions while supporting important causes.
• Donor-Advised Funds (DAFs): DAFs allow you to set aside funds for charitable giving, offering an immediate tax deduction and the flexibility to recommend grants to preferred charities over time.
• Private foundations: For those with substantial charitable interests, establishing a private foundation allows for a high level of control over donations and grants, enabling a lasting commitment to specific causes.

The financial professionals of Jupiter Wealth Management in Denver, CO, can work with you to analyze which strategies make sense and fit with your philanthropic plans and values.