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The Business Forum
The Family Legacy ~ A Grandparents Guide
by: Gurdayal Singh
The Vanishing Legacy
With the final breath, it all ended. All the lifelong dreams,
the fifty years of work, raising a family, the pain of losses, the memory of
joys and happiness gone. Now all that is left of that life are the memories of
that person and the legacy of a lifetime. To those left behind, the memories are
theirs to keep, but everything else must be divided into two categories: What
they are allowed to keep, and what the government claims to be theirs.
What is truly unfortunate is that the government claims must be settled first,
and what is left is divided between creditors of the deceased and members of the
A hundred years ago it was not uncommon for farms to be worked and owned by a
family. The grandparents were there working and contributing to the farm, along
with their middle-aged children and their grandchildren. The family structure
was whole. Family pride was evident and this was passed on generationally. The
older members of the family were well aware of the idea of legacy. They worked
hard to create a better life for the next generation. The farm, along with the
memories, was their legacy.
Today that element of a family legacy has almost disappeared. Although there are
loving memories, the passing of the family �farm� today known as family wealth,
has been mismanaged into non-existence. Interference from the government, an
enormous lack of financial knowledge, pride and ignorance robs families from
passing tremendous amounts of wealth to the next generation. Along with it goes
the lasting family legacy.
When no one pays attention to the everyday details of the farm, it will no
longer be a productive entity to pass on, and in many cases, it will become a
burden and a debt to the next generation of the family. Today the idea of
viewing the family as a single unit has been ignored by almost everyone, yet it
remains as one of the only solutions for creating lasting family wealth,
generationally. The passing of the family wealth (the farm) doesn�t occur
accidentally. It is planned and well thought-out. Rich people do this often and
their families remain rich. Poorer families, although their lives may prosper,
believe in taking it with them when they die. Their legacy is usually a home,
some savings, and other (for lack of a better word) stuff. Although those things
have value, they lack in comparison to what could have been passed on had the
entire family planned the family legacy seriously.
The idea of keeping wealth in the family is opposed vigorously by the government
because they have a harder time getting their hands on this money via taxes.
Many politicians try to pit the rich against the middle class, all the while the
middle class aspires to be rich pursuing their financial dreams via the lotto
and casinos. The difference comes down to this: Some families guarantee their
ongoing legacy while others gamble it away.
The Social Fiber Of The Country
The United States started to lose an important social foundation in the 1960's.
Crisis after crisis, from Vietnam to civil rights, the drug culture to
presidential assassinations, the once starry-eyed nation woke up with a reality
hangover that would plague it forever. What would suffer the most in this
historic time would be the family structure. The �What�s in it for me� and the
�I want it now� generation blossomed and grew up to train and educate the next
generation, flaunting the wisdom of ME and I.
The family social structure, once the cornerstone of
ethics and morality, started to crumble and with it family
opportunities also crumbled. The growth of single
parent families left little room for financial success.
Government social engineering only created more
problems and greater dependence for its so-called �free�
benefits. That dependency aided the problem not the
solution. The after-effects of the loss of the family
structure continue to cost the government billions of
dollars. Along with the costs, are increasing crime rates,
suicide rates, divorce rates, abortion rates, personal debt
and bankruptcy rates. All of these have a direct
correlation to the loss of the family structure.
Institutionalizing Educational Standards
With the fall of the family structure, the liberalizing
of education took on the role of psychologist in making
kids feel okay and being sensitive to their every need.
The new educational goal is that no one would fail in
school. They would only fail after they were out of
school. The ability to apply school knowledge to
everyday circumstances is non-existent. Not only is the
knowledge missing to grow wealth, but also missing is
the family and its ability to grow wealth generationally.
In the old days, this would be the equivalent to the
grandparents leaving the farm before they taught their
kids the farming process. Obviously, nothing would
grow, which is why in today�s family, nothing is growing
either. More time and energy is spent on teaching you
how to spend your money, rather than how to save it.
You end up unknowingly and unnecessarily giving away
your wealth and wealth opportunities.
If tomorrow you discovered an opportunity that, by
planning together with your parents or your kids, could
create millions of dollars for your family (or charities),
would you take advantage of that opportunity? If you
also discovered that the money could be transferred to
your family, guaranteed and tax free, would you do it? I
have reason to believe that you were not taught how to
do this in school, any school.
Creating The Legacy
It came to my attention while visiting the San Diego
Zoo that every animal display had something in common.
Each one of them was funded or sponsored by a family or
family foundation, a/k/a generational family wealth.
The question that came to my mind was: What did these
families do, that others didn�t or don�t do? The
revelation hit me like a ton of bricks: They leverage the
least amount of money to create the most amount of
wealth by investing in their family.
Rule Number One:
In your family, use the least
amount of money to create the greatest amount of
Rule Number Two:
Guarantee the wealth will
occur and that the legacy will transfer, tax-free.
That was the answer. It was clear, and believe me, it
was the best trip to the zoo I ever experienced. On the
way home though, one thought kept echoing through my
head: Rich people think like rich people, poor people
think like poor people. It was troubling. I asked myself
one question: Would someone want to create wealth for
their family if they didn�t have to spend one more dime
than they were spending right now? If you could realign
your assets to make wealth possible and still retain
control of the money would you do it? The key to all of
this is to consider the family as an investment.
Controlling The Asset
Investing is not about where your money is, it�s
about how can you use it to create wealth. This is far
different than buying a stock and praying that the stock
will go up. Warren Buffett never buys 100 shares and
just holds it. He, like Mark Cuban, buys shares of a stock
to get some level of CONTROL of the company. If you
have the resources to take control of a company, and you
think it�s a great investment, do it. If you want to try to
guess on some companies, buy their stock and hope it
goes up, you might as well go to Las Vegas, because you
have no advantage at all to CONTROL the value of that
In the old days, the family had total CONTROL of
the farm. The family could affect the growth and
outcome of the farm they owned and CONTROLLED.
Today, in generating family wealth, dabbling in stocks
and mutual funds doesn�t provide the ownership and
control that is needed to pass on wealth successfully.
The elements that affect these types of legacies are taxes,
risk, creditors, and luck. In defense of many who follow
this strategy, professional advice has told them this is the
only way to create wealth.
Unfortunately, following traditional investment
plans does not create multiples of wealth immediately. If
a family asset is not being used to generate income then
that asset should be used to create family generational
wealth. You would want to insure and guarantee that
the wealth be transferred to the family, tax-free. Most
importantly you would want to expend the least amount
of money to create the most wealth. This is known as
If you were able to invest in the oldest member of
the family and they allowed you to do so to create the
ultimate family legacy, what investment would be used?
Life insurance. It is the perfect solution for family
wealth creation. It is a contract the family CONTROLS.
The cash values and death benefit grow tax-deferred and
tax-free. It is protected from creditors and passes
outside of probate. Any number of family members
including the parents can contribute to the premiums.
This creates the greatest amount of death benefit that
will pass on to the family. All of this is centered on the
legacy of love. This will be a very emotional decision
and should be viewed with the proper perspective. In the
old days, all members of the family would invest all their
time and money to increase the wealth of the farm,
knowing someday it would be theirs. They didn�t do this
out of greed, but out of love for the family.
�Invest in the stock market
�Invest in real estate
�Invest in bank saving vehicles
�Invest in retirement plans
These create transfers of your wealth in the future...
�Possible losses in the market
�Fees for accounts and managers
�Income taxes, capital gains tax
�Estate tax implications
The one thing these investments have in common...
�They create transfers of your wealth
(This is a certainty, i.e. guaranteed)
�They involve huge sums of your money
�They rob you, your children and your
grandchildren of your legacy.
CREATE WEALTH NOW!!!
�Create your own generational legacy
�Minimize or eliminate estate taxes
�Create tax-deferred growth
�Create income in perpetuity for your
children, grandchildren and great
�Create your own charitable foundation
�Create the most money for your heirs
and favorite charities
Buying stocks and mutual funds cannot do this
Buying real estate cannot do this
Buying bank savings programs cannot do this
Retirement plans cannot do this
ONLY LIFE INSURANCE CAN DO THIS!!!
Think rich.........................or not
Create wealth...................or not
Make it happen................or not
Secure results...................or not
CREATE A CHARITABLE FOUNDATION
�Eliminate all estate taxes
�Create your own charitable foundation
�Create trustee income in perpetuity for your
children, grandchildren and great grandchildren
�Create the most money for your heirs and
�Premiums are tax-deductible.
For years, estate planning professionals have
operated under the theory that reducing the size of the
estate reduces the tax due on the estate. They focused on
reducing assets through gifting techniques and using
trusts. This merely reduces a portion of the estate tax
that would be due.
The real concern should be centered on how to leave
the most money and create wealth for your family and
favorite charities instead of paying the least estate tax. If
estate planning doesn�t focus on this, what good is it?
The goal should be to maximize your wealth and
eliminate costs and taxes while securing the future for
SUCH DRAMATIC WEALTH CREATION CAN
ONLY BE DONE WITH THE USE OF LIFE
INSURANCE specialists include
attorneys, accountants, CPAs, and personal and business
planning consultants. Services include:
�Investment and Retirement Planning
�Personal & Business Planning Consultants
�Estate Planning (including Wills and Trusts)
�Continuing Client Education
This educational material contains the
opinions and ideas of the author and is designed to provide useful
information in regard to its subject matter. The author, publisher and
presenter specifically disclaim any responsibility for liability, loss
or risk, personal or otherwise, that is incurred as a consequence,
directly or indirectly, of the use and application of any of the
contents of this information. No specific company or product will be
discussed. Promoting specific products, or applying any sales
recommendation with this information is prohibited. If legal advice or
other expert assistance is required, the services of a competent person
should be sought.
Singh is a Fellow of The Business Forum Institute.
Currently he is
the principal of Jyot Financial
and Insurance Services, an independent firm specializing in
comprehensive financial planning. Gurdayal specializes in
financial planning for small businesses, individuals and families.
He graduated from Delhi University in India with a masters degree in
Business Administration. He is fully licensed and accredited by the
State of California to provide both financial and insurance
services. He participates in continuing education programs in this field
to remain up to date on all applicable laws and regulations. Gurdayal is an active member of
the Sikh community in Southern California and an active supporter of The
American Heart Association.
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