By Zach Whitchurch
President | Wealth Advisor
Certified Private Wealth Advisor®
CFP®
When people ask me about transferring wealth to the next generation, they often focus on the mechanics—the trusts, the tax strategies, the financial vehicles. But after working with successful families for years, I’ve learned that the most critical question isn’t how to transfer wealth—it’s why.
I remember sitting with a client who had built a remarkably successful company. They were wrestling with how to share their wealth with their children while ensuring it wouldn’t diminish their drive to create their own success. “I don’t want to just hand over money,” he told me. “I want to give them an opportunity, but not a handout.”
That conversation captures what I believe is the heart of meaningful wealth transfer. It’s not about simply giving away money—it’s about being intentional with your resources in ways that reflect your values and strengthen your family’s future.
The Foundation: Your Family’s Purpose
Before we ever discuss specific strategies, I always encourage families to step back and think deeply about their purpose. Just as you built your wealth with intention—through careful decisions, hard work, and clear vision—you need to transfer it with equal purposefulness.
I’ve seen too many families rush into setting up complex financial structures without first answering fundamental questions:
- What does success look like for your family three generations from now?
- How can your wealth transfer decisions promote growth rather than dependency?
- What values do you want your wealth to reinforce?
Aligning Strategy With Purpose
When you’ve built significant wealth, it’s crucial to think strategically about how that wealth can support your family’s growth and values. But this looks different depending on where you are in your wealth-building journey. Let me share what I’ve seen work for families in different situations.
If you’re in your prime wealth-building years (typically your 50s), you’re likely thinking about both growing your assets and preparing the next generation. One family I work with took an interesting approach with their adult children’s business ventures. Instead of simply writing checks, they created a family investment committee. When their daughter wanted to expand her successful startup, she had to present a detailed business plan—just like she would to any other investor. This wasn’t about making it difficult; it was about maintaining the same standards that built the family’s wealth in the first place.
The key here isn’t just providing capital—it’s about passing on the business acumen and decision-making skills that created your success. I’ve seen this approach transform family dynamics. Rather than creating dependency, it builds competency.
For those looking at multi-generational impact, education often becomes a focal point. But, again, this isn’t about simply funding tuition. One client family established what they call their “Excellence Fund.” Yes, it covers education costs, but it also funds specialized training, startup costs, and even failed ventures—as long as there’s a clear learning component and alignment with the family’s values.
The most successful families I work with don’t just hand out money—they create frameworks for growth. Sometimes this means sophisticated trust structures, especially for families with $100M+ in assets. While having the right structure and mechanics are incredibly important, they are ultimately tools meant to serve your family’s overarching mission. What truly matters is how effectively these tools advance that mission.
For instance, families can use their trust structure not just for asset protection, but as a teaching tool. Their distributions can be tied to specific milestones—not just academic or professional achievements, but also personal growth goals. They’ve effectively turned their wealth transfer strategy into a family development program.
Creating Meaningful Impact
What I find fascinating is how different families interpret purposeful giving. For some, this means donating wealth to diverse causes, while for others, it’s about dedicating time to what matters most to them.
This approach to wealth transfer isn’t just about preserving financial capital—it’s about building human capital. When done thoughtfully, your wealth transfer strategy becomes a powerful tool for developing the next generation’s capabilities, judgment, and values.
Wealth Transfers Are Never Perfect
When considering wealth transfers, it’s important to remember that there’s no perfect plan. Often, when we work with successful families on the “how” of passing down wealth, potential pitfalls naturally start to surface:
- What if my kids blow the money?
- What if they marry someone we don’t like?
- What if they develop an addiction?
- What if they become super lazy and entitled?
These are some of the most common questions that come up during this process. It’s easy to focus on these “what-ifs” from a negative perspective. But there’s another side to consider—the positive possibilities:
- What if this allows them to start a business?
- What if this is something that will help them invent a revolutionary technology?
- What if this allows them more time to take care of children with physical or mental problems?
- What if this allows them the chance to further what is most important to our family?
They Have to Do Their Part
A successful wealth transfer is about much more than simply giving—it involves preparing family members to embrace the responsibility. This process begins well before any actual transfer of wealth, with a focus on education and cultivating your family’s human capital. As my partner Jeff McClean often says, “Money is a magnifier.” When you support your family in becoming the best versions of themselves, wealth transfers tend to bring the family closer, fostering a shared purpose and common goals.
Moving Forward With Purpose
The most successful wealth transfers I’ve witnessed share a common thread: they’re driven by purpose, not just tax efficiency or asset protection. Whether you’re considering helping with a business venture, supporting education, or creating a more formal structure for family wealth, the key is to align these decisions with your family’s values and long-term objectives.
At Solidarity Wealth, we help families create comprehensive frameworks that turn wealth transfer into an opportunity for family growth and development. If you’re interested in exploring how to structure purposeful wealth transfer strategies for your family, reach out to us at info@solidaritywealth.com or call 385-374-1665 to schedule a discovery call.
About Zach
Zach Whitchurch is the President and a wealth advisor at Solidarity Wealth, a privately held, independent wealth management firm that serves as a multi-family office to some of the Mountain West’s most successful families, technology entrepreneurs, and executives. Zach works with clients to develop both “Wealthy Financial Habits” and “Healthy Financial Habits” and thrives on helping them understand their finances by simplifying the complex. He uses his broad knowledge on a wide variety of topics to implement creative strategies for clients as he helps them feel both seen and heard, and supports them along the path to their dreams.
Prior to co-founding Solidarity Wealth, Zach was a financial advisor and a senior vice president of investments at Wells Fargo. He has a bachelor’s degree in accounting and a master’s degree in finance from the University of Utah and holds the CERTIFIED FINANCIAL PLANNER® and Certified Private Wealth Advisor® designations. He is also a Managing Partner of Solidarity Capital. Outside of work, Zach enjoys spending time with his wife and four children and being active in both indoor and outdoor sports. He is also involved with coaching youth sports, and loves to read and learn about how the world works on a deeper level.
Solidarity Wealth is a registered investment adviser. This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Solidarity Wealth and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Solidarity Wealth unless a client service agreement is in place.
