The statistics are sobering. According to the Federal Reserve's 2022 Survey of Consumer Finances, the wealth gap between white Americans and Black Americans is approximately $241,120.  This disparity didn't happen by accident. It's the result of centuries of policies and practices that systematically prevented Black Americans from building and preserving wealth. From slavery and Jim Crow laws to discriminatory lending practices, each generation of Black families has faced unique challenges in creating financial security.

However, many people don't realize that even when Black families manage to build wealth despite these obstacles, that wealth can be lost between generations. The very families who work hardest to overcome systemic barriers can lose everything they've built simply because they lack a plan to ensure that their wealth is preserved for the next generation. 

As we celebrate Juneteenth this week, let’s explore how Life & Legacy Planning can help break this devastating cycle and protect the wealth you've worked so hard to create.

The Hidden History of Wealth Destruction

Understanding today's wealth gap requires acknowledging the deliberate policies that prevented Black families from accumulating assets, going back centuries. The Homestead Act of 1862 gave away millions of acres to white families while excluding Black Americans. The GI Bill after World War II helped create the white middle class, but discriminatory practices largely excluded Black veterans from these opportunities.

Perhaps most devastating was redlining, where banks systematically denied mortgages to Black families in certain neighborhoods. Since homeownership has traditionally been the primary way American families build wealth, this practice alone prevented countless Black families from participating in one of the greatest wealth-building periods in American history.

Even when Black families managed to accumulate property and businesses, these assets were often destroyed or seized. The 1921 Tulsa Race Massacre wiped out the prosperous "Black Wall Street" district. Similar attacks on successful Black communities occurred throughout the country, destroying millions of dollars in Black-owned assets.

What does this history mean for your family today? Building wealth as a Black family requires not just overcoming current barriers, but also starting from a position where previous generations may have lost assets that should have been passed down to you.

How Traditional Estate Planning Fails Black Families

The primary mechanism for passing assets after death is estate planning. Traditional estate planning often fails Black families because it doesn't address the unique challenges and family structures that exist in many Black communities. Standard estate planning assumes a nuclear family structure with clear legal relationships, stable housing, and formal financial arrangements. But Black families often have more complex support networks that include extended family, chosen family, and informal caregiving arrangements that don't fit neatly into traditional legal documents.

Consider this hypothetical scenario: Maria worked two jobs her entire life to buy a small home and save money for her grandchildren's education. She created a simple will, leaving everything to her three children equally. When Maria died, her children discovered that her will made a big mess for them. The house would need to go through probate court—a process that took two years and cost thousands of dollars in legal fees. During that time, they couldn't sell the house or access Maria's savings. One child couldn't afford to wait and sold his share to a property investor for significantly less than it was worth, resulting in a situation where his siblings were joint owners with the investor. By the time the process was complete, much of the wealth Maria had built was gone.

This scenario plays out repeatedly in Black communities because traditional estate planning focuses on creating documents rather than creating plans that actually work. As illustrated above, a will won’t help when your family needs immediate access to resources or when family members can't afford to wait through lengthy court processes. 

But there is a way to create a plan that works when your loved ones need it. It’s through our proprietary process called Life & Legacy Planning. 

How Life & Legacy Planning Works 

The Life & Legacy Planning® process takes a completely different approach that addresses the real-world challenges Black families face. Instead of focusing primarily on legal documents, we focus on creating a comprehensive plan that protects your wealth, ensures your family can access it when they need it most, and helps you preserve wealth for future generations. Here’s how.

When you work with us, we start by understanding your unique family dynamics and financial situation. Who are the people you're supporting? What informal arrangements do you have in place? What are your biggest concerns about your family's financial security? 

A Life & Legacy Plan may also include strategies to avoid probate court, which can be especially important for families who may not have the resources to navigate lengthy legal processes. We help you structure your assets so your family can access them immediately when you die, without waiting months or years for court approval.

Wealso help you create detailed instructions for your loved ones about your assets and your wishes. This is crucial because you may have wealth in forms that aren't immediately obvious—life insurance policies, retirement accounts, or property that has been in the family for generations. Without clear guidance for your loved ones, these assets can be easily lost or overlooked.

Perhaps most importantly, Life & Legacy Planning includes regular reviews and updates to ensure your plan continues to work as your life changes. Building generational wealth requires ongoing adaptation as laws change, your family dynamics change, and your financial situation evolves. When you create a traditional estate plan - even with a lawyer - usually the onus is on you to remember that you need to update your plan. Instead, we have systems in place to ensure I follow up with you regularly over time, so we can make updates when they’re needed.

Building the Kind of Wealth That Lasts

But creating a Life & Legacy Plan isn't just about protecting what you have—it's about creating a foundation for generational wealth building. I help families think beyond just financial assets to consider all the ways they can pass on wealth. This includes your knowledge and experience, your family history, your values, long-time family traditions you want to pass on, and so much more.  These intangible assets are more valuable to your loved ones than money in the bank.

Your Life & Legacy Plan can also include strategies for teaching financial literacy to the next generation. When your children understand how money works, how to invest, and how to protect their assets, they're better equipped to continue building wealth rather than just spending what they inherit. 

Are you ready to break the cycle of wealth loss that has affected too many Black families? Do you want to ensure that the progress you've made is passed on to your children and grandchildren, rather than being lost to court costs and failed planning? All you need to do is take action now.