Why Estate Planning Is The Secret To Building Generational Wealth In Our Community
For Blacks in America, even more important than creating wealth is passing that wealth down to the next generation. According to a study by Prosperity Now and the Institute For Policy Studies, the estimated median wealth for Blacks in America will fall to $0 by 2053. Researchers concluded, "As long as a substantial racial wealth gap persists, White households will continue to enjoy greater advantages than their Black and Latino neighbors in meeting the financial challenges of everyday life and will be able to make greater investments in their children, passing economic advantages on."
Confronting the wealth gap and the associated public policies that help fuel it will be one of the biggest challenges of our current generation.
Lawyer Art Steele is trying to change this narrative. As the host of the InkSecure Podcast, she educates entrepreneurs about the legal aspects of their business and how to use the law to grow their business. As a Trusts and Estates attorney, she's also a fierce estate planning advocate with a mission to educate as many minorities about the necessity of proper long-term estate planning. "It's not sexy [and] so easy for people to ignore. When it becomes relevant, it's way too late," says Art. "Personal behavior does not close the wealth gap. We can make as much money as we want. We can be our own bosses. We can build these million-dollar entrepreneurial businesses as much as we want. Yes, it's important that we create wealth, but we need to pass it down and pass it down the correct way. If we don't, every single generation is starting from scratch," states Art.
Avoiding the financial vacuums that are created when someone dies and providing financial gifts for the future, is the key to building wealth in our communities. xoNecole spoke to Art about the benefits of estate planning and some of the key things to keep in mind when beginning the estate planning process.
1. The ability to pass down wealth efficiently.
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Instead of leaving it up to the probate process, estate planning allows you to set up how your wealth is passed down and in a cost-effective and timely manner. Oftentimes, death is unexpected and can leave families with immediate financial obligations. If one's estate is not properly set up, getting access to funds can be a long, drawn-out and costly process. "When you create an estate plan and keep your estate out of probate, you save money. More money goes to your heirs," recommends Art.
While having a will can be useful, setting up a trust is the next step in ensuring what you leave behind gets disposed of in a timely manner. "If you only have a will and not a trust, your entire estate goes through the probate (legal process)," warns Art. To expedite the process, "you should create a will (to be filed in court), but dispose of all your property through a trust. This method avoids probate because the trust agreement is a private contract between you and the trustee (someone you've named). You can get as detailed as possible," explains Art. The value of setting up a trust is the trustee's ability to start working immediately to take care of your family, carry out your wishes and dispose of your assets without having to wait on the court system.
In order to truly build generational wealth, Art recommends thinking beyond lump-sum payouts, where money and assets can be squandered quickly. "When creating an estate plan, think about two to three generations down the line. For example, you may give your children access to a trust fund for life (in the form of monetary distributions) and when they die, the trust funds pass on to the next generation." Though trusts cannot be passed on for an eternity, ensuring there is something left to give to the next generation is more powerful than not having anything passed down at all.
Another key thing to keep in mind is investing in life insurance--especially if you don't have physical assets or money to leave behind. It's important to list beneficiaries even if you don't have a dependent, and it is usually cheaper the younger you are. "Life insurance helps keep things at status quo. No one has to pay for your funeral. You can leave money behind to a niece, brother, or partner, etc." says Art.
2. The ability to have your affairs handled more cost-effectively.
Estate planning also involves creating a plan and designating someone to handle your affairs in the event you become incapacitated, which is done in the form of a power of attorney. "This immediately gives someone access to all of your financials and ability to take money out of your bank account. Your Power of Attorney (POA) can also sign contracts, real estate documents, enter into business contracts, or talk to the IRS on your behalf," explains Art. Your POA can legally tend to immediate financial concerns such as paying your rent, mortgage, or child care should you become incompacitated or die.
If you don't have a power of attorney, loved ones will have to "hire a lawyer, go to court, get a bond and have the court appoint [someone] as the custodian or conservator of your money," warns Art. The process is very expensive and usually prohibitive for most families because it requires hiring a lawyer on an emergency basis because of the urgent needs. Investing in hiring a lawyer to draft a state-recognized Power of Attorney document is worthwhile. Many banks and some states have their own power of attorney documents available for free.
Having an advanced medical directive is also extremely important and allows individuals to designate someone to make medical decisions on their behalf in case they become incapacitated. Advanced medical directives should "have instructions on what should be done to your body, access to medical records, and contain a HIPPA release," says Art. Oftentimes important medical decisions need to be made in traumatic circumstances. Taking the time to think about who you entrust to make important medical decisions on your behalf could be a life or death matter. Why leave it up to chance?
3. The ability to make your final wishes clear.
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Estate planning protects against speculation and disputes concerning the unknown that can usually follow death or incapacitation. It allows you to avoid confusion and answer questions in advance for heirs such as "How, when, and where will my property and assets be disposed? Who will take care of my children?"
Take celebrities Nipsey Hussle and Prince as examples - both prolific musicians who died without a will at different stages of their career. Nipsey's $2 million estate is currently being petitioned to be administered by his older brother Samiel Asghedom. Three years after Prince's death, his estate, valued between $200-300 million, is still unsettled.
Estate planning is also critical for business owners. "If you have a business that has inventory, what happens to that? Who gets it? Does the business continue on [if you die]? Who has the authority to continue on? Can they sell the business? Who do you want to manage the business?" An estate attorney will work with you to legally set up the answers to these questions to ensure your business doesn't die as well.
4. The ability to protect who manages your intellectual property.
Being that we live in a digital world, we all have some form of intellectual property, which Art describes as "property that can produce income long after you're gone." Who is going to manage that income? Where does that income go? Who manages the property so that it actually continues to produce income? Art recognizes, "A lot of entrepreneurs are developing intellectual property through e-books, online courses, blogs. What happens to your creations?" For instance, for musicians especially, leaving behind clear instructions on how one's masters, image and likeness and trademarks can be used is important for protecting one's artistic legacy.
Towards the end of our chat, Art confesses that estate planning can often be a "tough thing to spend money on" because the person setting up their estate plan doesn't receive an immediate benefit. However, "it's the only step we can take to close the generational wealth gap," she urges readers. "Even if you do not have children, you should leave something behind. We should look at estate planning as a way to create wealth for our community."
No one wants to think about their ultimate demise, but making sure the next generation of Blacks in America are set up for success by our ability to pass wealth down is one the most urgent duties of our time. Stop waiting. Start now.
To learn more about getting started on planning your estate and get a FREE copy of Art's estate planning worksheets, click here.
Be sure to follow Art on Instagram @artsteele_esq for more estate planning tips.
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Rana Campbell is a Princeton University graduate, storyteller, content marketing strategist, and the founder and host of Dreams In Drive - a weekly podcast that teaches you how to take your dreams from PARK to DRIVE. She loves teaching others how to use their life stories to inspire action within oneself and others. Connect with her on Instagram @rainshineluv or @dreamsindrive.
Jada Pinkett Smith On How Psychedelics Saved Her Life & The Status Of Her Marriage To Will Smith
Jada Pinkett Smith is speaking her piece on the status of her marriage with longtime love Will Smith. On the heels of releasing her highly anticipated memoir, Worthy, Jada is gracing the cover of PEOPLE and sharing the truth about her mental health struggles throughout the years, the infamous Oscars slap, and her marriage.
According to the 52-year-old author, though she seemed to "have it all" in life - the riches, the fame, the love, the family, there was a part of her that couldn't escape her past traumas and depression that plagued her early on in her career. "While I was really living the dream, I hit a huge wall — a massive amount of depression. I think that I looked at having outside sources to supplement for the voids that I was feeling inside," she told PEOPLE.
By the time she turned 40, she had encountered her breaking point and spiraled so deeply that she saw no way out for herself aside from death. She went on to say that she heard voices in her head telling her to end her life and that told her of her unworthiness, pulling her deeper into her depression. "I started looking for places, cliffs where I could have an accident because I didn't want my kids to think that their mother had committed suicide.”
Jada credited friends of her son Jaden for putting her on to ayahuasca, a powerful and traditional plant-based brew used for shamanic and healing rituals known for its psychoactive properties. She said partaking in ayahuasca changed her profoundly and "the suicidal thoughts completely went away."
"Ayahuasca helped me, it gave me a new intimate relationship with myself that I had never had before," she told the outlet about her first time taking the psychedelic. Keep reading for more key takeaways from Jada's PEOPLE exclusive.
Jada Pinkett Smith on the status of her marriage to Will Smith:
In what might have been a shocking revelation to most, Jada revealed to the world that she and Will have actually been separated for the past six years, going on seven years. She explained the status of their 26-year marriage to PEOPLE:
“We’re still figuring it out. We’ve been doing some really heavy-duty work together. We just got deep love for each other and we are going to figure out what that looks like for us.”
Amy Sussman/WireImage
Jada on how her relationship with Will Smith caused her to abandon her mental health:
As her star in Hollywood was rising thanks to starring roles in projects like A Different World, Jason's Lyric, and Set It Off, Jada revealed that she was taking Prozac and being treated for depression and suicidal ideation. Meeting Will would cause her to develop a false sense of not needing to take care of her mental health.
"Once I met Will, I completely abandoned my mental health. I was so intoxicated by him and our dynamic. I really felt like I'm cured," she said to PEOPLE. "He became the drug."
Albert L. Ortega/Getty Images
Jada Pinkett Smith on the self-acceptance her kids have taught her:
"My children, they’re little gurus," she told the mag of her kids, bonus son Trey, 30, Jaden, 25, and Willow, 22. "They’ve taught me a deep sense of self-acceptance.”
“They love every part of me. The level of love, unconditional love that they have for me and their dad. And it's one thing to want to be the person that gives that unconditional love. And then there's, to be the recipient of that.”
For the full cover story and photos, head over to PEOPLE here.
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What if we told you things like chronic pain, brain fog, emotional bluntness, hypervigilance, anxiety, immune system dysfunction, trouble sleeping and relaxing, and feelings of being overwhelmed and hopelessness are all signs of an overactive nervous system? Would it make you take another look at the amount of stress in your life and how you’re going about minimizing said stress?
Well, it should.
Stress is how our bodies respond to pressure, and those same bodies have developed a sophisticated system to cope with it. That sophisticated system is the nervous system. But with all of the stress thrown at us through our work, our relationships, and our lives, it can be easy to understand why stress has become the default setting for so many.
The problem with making stress your default is that your chances of having an overworked nervous system increase. Your body could also enter a state of chronic stress, leading to an overactive “fight or flight” response. Nervous system dysregulation occurs when this response becomes chronic or fails to shut off after the perceived threat is gone and can lead to the body believing it’s in a state of danger at all times.
While the stress response is essential for survival, it's not meant to be active all the time, and an overactive one can lead to various health issues. Stress isn’t called a “silent killer” for nothing. This is due to the influx of stress hormones and high cortisol levels that cause the eventual disruption of major bodily processes and make you more susceptible to depression and anxiety, among other health problems.
Leading a truly healthy lifestyle is the difference between an overworked nervous system and a calm one. The latter is a crucial aspect of maintaining overall well-being, and it can positively impact your healing and wellness journey because you can’t really heal in a body that’s chronically stressed. As “the father of mindfulness,” Thích Nhất Hạnh once said, “Stopping, calming, and resting are preconditions for healing.”
A calm nervous system can be achieved through resetting your nervous system, just follow the practices below consistently with care.
How To Reset & Heal Your Nervous System
1.Breathe Deep
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Deep breaths can work wonders in a stressful situation. Spend a few minutes each day focusing on your breath, practicing mindfulness, and calming your mind. The reason deep breathing is such a powerful tool to usher in calm is that it activates the other part of your nervous system, the parasympathetic nervous system (PNS).
Unlike your SNS and its stress hormone-filled “fight or flight” response, the PNS functions in a way that is opposite but complementary to the SNS and is responsible for “rest and digest,” a response that occurs when the body is at rest. Deep breathing techniques, such as diaphragmatic breathing, box breathing, and alternate nose breathing, can also help reduce stress. As an added bonus, it’s also one of the quickest ways to calm an activated nervous system.
2.Embrace the Chill of Cold Therapy
So, what's up with cold therapy? Well, it all starts with the body's response to cold exposure. Cold exposure also helps reduce the production of stress hormones like cortisol, helping the nervous system relax. Its benefits also include reducing inflammation, improving sleep, and enhancing your mood, among other things. One of the most popular forms of cold therapy is ice baths.
The rush of sensations the body feels, along with the calming effects it creates as you adjust to the exposure to the cold, is just one of the reasons those who avidly partake in ice baths turn it into a mindfulness practice. That and the way cold therapy supports a calm nervous system. Cryotherapy is a more accessible, less immersive form of cold therapy that gives you all the benefits in a fraction of time and energy.
Whether you opt for an ice bath, cryotherapy, or simply a refreshing cold shower, cold therapy is a cool (pun intended) way to quiet an activated nervous system.
3.Forest Bathe in Nature or Go on a Hike
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Immerse yourself in the sights, scents, and sounds of nature through the act of forest bathing. Forest bathing encourages you to be fully present in the moment. The idea is to slow down, be present, and truly experience the forest. Instead of worrying about the past or future, you're focused on the rustling leaves, the scent of pine needles, and the feel of the earth beneath your feet. This mindfulness helps reset your nervous system and reduces anxiety.
Disconnect from technology and reconnect to the world around you. As you walk, engage your senses. Notice the colors, textures, and scents around you. Listen to the sounds of birds, leaves rustling, and water flowing. Inhale the pure forest air. Remember that nature is magic. Bathe in the calming magic of the forest’s tranquility.
4.Ground Yourself
Grounding, also known as earthing, is a simple yet powerful practice that involves connecting with the Earth's energy. Grounding involves physically touching the Earth's surface - think walking barefoot on grass, soil, or sand. When you do this, your body absorbs electrons from the Earth, which can help neutralize free radicals and reduce inflammation. This electron exchange has been shown to have a positive impact on various aspects of our health, including our nervous system.
Grounding has been found to reduce the production of stress hormones like cortisol. Start your day with your bare feet on the ground in your backyard, the woods, a park, or a garden. Remember, grounding doesn't require any special equipment or a specific location. It's all about being present and feeling the Earth beneath you.
5.Eat Your Omega-3s
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Fatty fish like salmon, mackerel, tuna, and sardines are fantastic sources of Omega-3 fatty acids. Omega-3s have been shown to reduce inflammation in the body, which is often linked to anxiety and stress. Omega-3 fatty acids also have a central role in nervous system development as well as its repair.
So, swap your peanut butter out with some walnut butter, sprinkle flaxseeds onto your salads, or add chia seeds to your yogurt or morning smoothie – your taste buds and your nervous system will thank you.
6.Tap Into Emotional Freedom with EFT Tapping
EFT stands for Emotional Freedom Techniques, and it's often referred to as "tapping." This technique combines ancient Chinese acupressure with modern psychology to help you release emotional stress, calm your nervous system, and promote overall well-being. It's like a magical blend of science and self-care.
So, how does it work? Well, it's surprisingly simple. You use your fingertips to tap on specific points on your body while focusing on a particular issue or emotion that's bothering you. These points are along meridian lines, which are pathways of energy that have been used in Traditional Chinese Medicine for centuries.
When you tap on these energy points, you're sending calming signals to your brain. It's like giving your amygdala (the brain's fear center) a gentle reminder that you're safe and sound. This reduces the production of stress hormones like cortisol and activates your body's relaxation response.
7.Book That Massage
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Massages stimulate the release of feel-good hormones like serotonin and dopamine while reducing the levels of the stress hormone cortisol. This hormonal shift leads to lowered anxiety and an overall sense of well-being. Massages stimulate your PNS. Your “rest and digest” response takes over, and your mind and body are transported to a place of balanced calm.
Beyond the immediate relaxation, regular massages can have profound long-term effects on your nervous system. They can improve your sleep quality, boost your immune system, and even help manage chronic pain conditions. Try to have one at least once a month to see the best results.
8.Exercise, But Make It Gentle
Incorporating gentle exercise into your daily routine can be a game-changer to soothe your nervous system, helping you achieve that sense of calm and balance you're aiming for. Gentle exercise acts as a natural stress reliever. It reduces the production of stress hormones like cortisol, making you feel more relaxed.
Gentle exercise looks like low-intensity exercises. Think yoga, stretching, Tai Chi, and Qigong that don't require a huge time commitment. A quick morning yoga session or an evening stroll can do wonders for your nervous system.
9.Sing & Chant
Singing and chanting are wonderful practices that can have a soothing and calming effect on your nervous system. It's a therapeutic tool for anyone seeking relaxation. When you sing, you engage various muscles, including those in your diaphragm and abdomen. This deep breathing is similar to the controlled breaths of yoga or other forms of breathwork, instantly signaling your nervous system to calm down.
Chanting is like a rhythmic meditation that combines sound, breath, and intention. It has been practiced for centuries in various cultures and spiritual traditions, including Buddhism and Hinduism.
10. Connect With Your Community
Our brains are wired for connection, no matter where you are in the world. When we interact with others in meaningful ways, our ability to recover from depression, anxiety, and stress improves, and so does our quality of life. The journey toward a calm nervous system is intertwined with the power of social connections.
Opting for in-person meetups over lengthy texts or calls for at least one person in your friend group once or twice a month could be an effective way to prioritize social connection. So, don't hesitate to nurture those relationships, cultivate connections with new people, and share some laughter with your loved ones. It's all part of the recipe for inner peace and well-being.
One of the most famous chants is the "Om" mantra. When you chant "Om," you're not just making a sound; you're tapping into a universal vibration. This resonance can help synchronize your brain's hemispheres, leading to a sense of inner harmony and relaxation. It's like a reset button for your mind and body.
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