Breaking the Cycle: How Estate Planning Protects Black Families' Generational Wealth

As we celebrate Juneteenth this week, let’s explore how Estate Planning can help protect the wealth you've worked so hard to create.

The History of Wealth Discrimination

Understanding the roots of today’s wealth gap means recognizing the historical barriers that black families have overcome with strength and perseverance. For generations, policies like the Homestead Act of 1862 and the post–World War II GI Bill created opportunities for many Americans to build wealth—yet often excluded black families through discriminatory implementation. Despite these obstacles, black communities have continuously demonstrated resilience, entrepreneurship, and the determination to succeed.

One of the most significant challenges came through redlining, where banks routinely denied mortgages in predominantly black neighborhoods. Since homeownership has long been a cornerstone of generational wealth in America, these policies placed unnecessary roadblocks in front of families working hard to secure their futures.

Even in the face of these injustices, many black families still found ways to build businesses, acquire property, and uplift their communities. Though tragedies like the 1921 Tulsa Race Massacre devastated prosperous neighborhoods like Black Wall Street, they also revealed the economic strength and promise that existed—and continues to exist—within black communities across the country.

Today, that legacy of dignity, capability, and success lives on. It’s not only a testament to what has been overcome, but a powerful foundation for what lies ahead.

What does this history mean for your family today? Building wealth as a black family today often means doing so without the benefit of assets that could have been passed down through generations. Yet despite that history, many families are forging a strong financial future—laying the foundation for new legacies with determination, wisdom, and vision. At Simpson Law Firm, we help you protect all that you have worked so hard to build with unique estate planning. 

Traditional Estate Planning Fails Families

The primary mechanism for passing assets after death is estate planning. Traditional estate planning often fails black families in the same way it fails all families, and then on top of that, it doesn't address the unique challenges and family structures that exist in many black communities. Standard estate planning assumes a family structure with clear legal relationships, housing, and formal financial arrangements. 

In some black communities, family is more than just blood—it's a powerful network of support, resilience, and deep-rooted connection. Whether it's grandparents raising grandchildren, aunts and uncles who are like second parents, or close family friends who become chosen family, the structure may look different, but the love runs just as deep, if not deeper. This structure does not fit neatly into traditional legal documents or the state’s default estate plan.

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 well-meaning will created 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 without court oversight, which was even more time-consuming and costly. 

Unfortunately, Maria’s kids didn’t have a relationship with a lawyer that Maria had built a relationship with during life, and instead, under pressure to sell Maria’s house after her death, they worked with a lawyer who specialized in probate for the black community. The lawyer dragged out the process, leaving Maria’s kids fairly desperate to sell the home, and ultimately they did sell, at a discount, to a property investor who the lawyer had lined up to buy the property for less than they would have gotten on the open market. The lawyer also seemed to be stirring up conflict between the three siblings, increasing her fees. 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 often focuses on creating documents, leaving the creators of those documents with false security rather than plans that actually work with an advisor to guide their loved ones. As illustrated above, a Will won’t help when your family needs immediate access to resources, when family members can't afford to wait through lengthy court processes, or when unscrupulous lawyers still flood the probate world and take advantage of financially or legally inexperienced family members. 

But there is a way to create a plan that will work when your loved ones need it, and won’t fail them or leave a mess behind. 

How Our Process Works

Our estate planning process takes a completely different approach that addresses these real-world challenges that most families face, and which can impact black families even more significantly, due to the historical inequities. 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 Simpson Law Firm, 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? 

We design a comprehensive Estate Plan that 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.

Our experienced attorneys also 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, our process 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.

Building the Kind of Wealth That Lasts

Creating an estate plan isn't just about protecting what you have—it's about creating a foundation for long-term generational wealth building. We 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 comprehensive Estate 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.

Your Next Steps

At Simpson Law Firm, we will support you to create an Estate Plan that protects the wealth you've worked so hard to build and that serves your family for generations to come. Our process starts with a free estate planning session, where we’ll discuss your specific family dynamics, your goals, and what will happen to you if you become incapacitated and to your loved ones when you die. You’ll also inventory all your assets so your loved ones know exactly what you have and nothing gets lost. From there, we’ll create an Estate Plan that reflects your unique family dynamics and creates a foundation for ongoing wealth building.

Click here now to schedule a complimentary estate planning session and get started today!

This article is a service of Simpson Law Firm. We do not just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love. We offer an Estate Planning session, during which you will get more financially organized than you’ve ever been before and we will assist you in making all the best choices for the people you love. You can begin by contacting us here, https://simpsonestatelaw.com/contact-us or calling us at 803-764-9555, and one of our friendly client service assistants will help you set up your consultation.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.