For many clients, estate planning is not just about transferring assets. It is about creating a legacy that can support children, grandchildren, and future generations in a meaningful and efficient way.

Many clients think of inheritance as a future event. As a financial professional, you can help them view it as a long-term planning opportunity that should begin much earlier.

Start With the Bigger Question

When discussing multigenerational planning, one important question often shapes the conversation: 

Polina Engel, JD, CLU, Director Advanced Markets Life  Midland National

Will heirs inherit assets, tax headaches, or both?

Today’s federal estate tax exemptions remain relatively high, which may cause some first-generation clients (G1) to believe estate taxes are not a concern. But future tax law changes could create very different outcomes for the next generation.

While G1 may avoid estate tax exposure entirely, G2 could eventually face a much different environment if exemptions are reduced in the future.

That is why multigenerational planning matters. Instead of focusing only on the transfer from G1 to G2, you can help clients think strategically across multiple generations, including:

• G1 (parents or grandparents)
• G2 (children)
• G3 (grandchildren)

By planning across generations, you can help families preserve flexibility, improve tax efficiency, and better prepare heirs for the future.

Bring More Than One Generation Into the Conversation

Many legacy planning conversations happen only with G1. But long-term success may depend on involving multiple generations earlier in the process.

Multigenerational estate planning also provides an opportunity to build relationships with children and grandchildren that may develop into future client relationships over time.

G2 and G3 may eventually be responsible for:

• Managing inherited wealth
• Continuing a family business
• Overseeing charitable goals
• Preserving family values and intentions

Different Families Need Different Strategies

Your clients want confidence that their wealth will transfer in the most effective and tax-efficient manner possible. By exploring multiple planning options, you can help families choose an approach aligned with their goals and long-term vision.

For some families, traditional estate planning strategies still make sense.

These strategies may include:

• Purchasing life insurance on G1
• Holding the policy inside an irrevocable life insurance trust (ILIT)
• Creating liquidity to help pay estate taxes if they arise

This strategy can help heirs avoid selling businesses, real estate, or investment assets to cover estate-related expenses.

Taking a different approach

In some cases, the better planning opportunity may involve insuring a different generation entirely.

Rather than insuring G1, some clients may consider:

• Making gifts today to reduce their own taxable estate
• Using those gifts to help fund life insurance on G2
• Planning for potential estate tax exposure one generation later

This approach may become increasingly important if estate tax exemptions decline in the future.

For some families, the primary concern is not whether G1 will owe estate taxes today — it is whether G2 could face a larger tax burden decades from now.

By facilitating planning discussions between generations, you can help clients create stronger communication, clearer expectations, and better preparation for future responsibilities. Encourage clients to also work with a tax advisor and estate planning attorney to build a strategy aligned with their family’s long-term goals and legacy objectives.

A Legacy That Lasts

At its core, multigenerational estate planning is about helping families make intentional decisions today that can benefit future generations tomorrow.

With thoughtful coordination and tailored planning strategies, wealth can become more than an inheritance. As a financial professional, you can help clients position their wealth as a lasting legacy that continues working across generations.

Trusts should be drafted only by an attorney familiar with such matters. Neither Midland National nor its agents give tax advice. Please consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

Sammons Financial® is the marketing name for Sammons® Financial Group, Inc.’s member companies, including Midland National® Life Insurance Company. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, Midland National Life Insurance Company.