Hispanic Heritage Month is a time to celebrate our rich culture, but it’s also a great opportunity to reflect on the financial future of our families. As a Latina and a CERTIFIED FINANCIAL PLANNER® professional I often see that our financial needs and values differ from others. We care deeply about supporting multiple generations, and that should be reflected in our financial planning. Yet, many of us face unique challenges in managing wealth, preparing for the future and passing down assets between generations in an estate plan. Let’s talk about how we can take control of our financial future and create a lasting legacy.
Planning Across Generations
In many Hispanic families, it’s common for property or financial support to be passed down informally without clear planning. We’ve all heard stories about family members arguing over "terrenos" (land) back home because there wasn’t a proper estate plan in place. To avoid confusion and conflict, it’s essential to have open conversations with our Hispanic parents and older relatives about their finances and what will happen to family assets in the future.
Talking about money can be uncomfortable, but it’s important. A well-designed estate plan, including wills and trusts, helps ensure property and money are passed down smoothly. Planning ahead also helps protect assets and avoids unnecessary taxes. By being proactive, you can steer your Hispanic family away from the conflicts that often come with informal arrangements.
Establishing a Family Emergency Fund
In many Hispanic families, the older generation hasn’t had the resources to save enough for retirement. Between low wages, sending money back home and caring for immediate family, saving for the future often took a backseat. This can be stressful for younger generations who want to be financially stable but also feel responsible for their parents’ future.
Setting up a family emergency fund is a great way to prepare for this. The fund helps you support your parents or older Hispanic relatives when they stop working, without putting your financial future at risk. In my practice, I encourage clients to decide ahead of time how much they’re willing to contribute to family support — whether it’s a specific dollar amount, a percentage of their income or helping a particular family member.
Having clear boundaries ensures you can help without losing sight of your own financial goals.
Cross-Border Property Ownership Plans
Many Hispanic families maintain strong ties to their home countries and own property or plan to invest in real estate abroad. This connection is beautiful, but owning property in another country comes with its own challenges. Different tax laws, inheritance issues, and remote property management can complicate things.
If you own property abroad or plan to, working with a financial advisor who understands cross-border issues is a good idea. They can help you structure your property ownership to minimize taxes, create trusts to make inheritance or estate planning more manageable, and ensure that your real estate investments abroad complement your U.S.-based financial plans.
Business Succession Planning for Family Enterprises
For many Hispanic families, owning a business is a source of income but not always seen as an asset that can be passed down in an estate plan. However, with the right planning, your family business can provide wealth and financial security for future generations.
A financial advisor can help you think beyond your business’s day-to-day operations and see it as an asset that grows over time. By planning for the future, you can pass your business down to the next generation or sell it for a profit. Succession planning helps ensure that your business remains successful and continues to provide for your family long after you’ve stepped away.
The Path Forward
As the Hispanic community grows, so does the need for financial education and resources tailored to our unique needs. Hispanic Heritage Month reminds us that we can preserve our cultural values while building financial security. By working with a CERTIFIED FINANCIAL PLANNER® professional and creating a thoughtful plan, you can achieve financial stability and create a legacy that honors your heritage. Find your CFP® professional at www.LetsMakeAPlan.org.
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