Building Generational Wealth: Estate Planning for Black Families
February is Black History Month, a time to honor the resilience, achievements, and contributions of Black Americans. It's also a time to talk about something that doesn't get enough attention: wealth building and generational wealth transfer for Black families.
Last month, the Wilmington Chamber of Commerce launched the Minority Chamber, and over 200 people showed up to the first meeting. Two hundred Black business owners, entrepreneurs, and community leaders in one room, all focused on the same thing: building economic power and creating opportunities.
That's what this is about. Economic power and generational wealth.
Black families in the United States face systemic barriers to building and preserving wealth. Centuries of slavery, Jim Crow laws, redlining, discriminatory lending practices, and ongoing economic inequality mean that the median wealth of Black families is a fraction of white families.
But here's what doesn't get talked about enough: estate planning is one of the most powerful tools Black families have to protect the wealth they've built and pass it down to future generations.
This is a conversation about why estate planning matters, what happens when you don't have it, and how Black families and Black-owned businesses can use legal tools to build generational wealth despite the barriers.
The Wilmington Minority Chamber and Black Business Ownership
The launch of the Wilmington Minority Chamber is huge. Over 200 people showing up to the first meeting tells you everything you need to know: Black business owners in Wilmington are serious about building wealth, supporting each other, and creating economic opportunities.
But here's what a lot of those business owners might not be thinking about: what happens to your business when you die?
If you own a restaurant, a salon, a contracting company, a consulting firm, or any other business and you don't have an estate plan, your business could be:
Tied up in probate for months or years
Divided among heirs who don't know how to run it
Forced to close because there's no clear succession plan
Sold to pay estate taxes or creditors
All that work you put into building your business? Gone. Your family's source of income? Gone. Your legacy in the Wilmington community? Gone.
Estate planning ensures your business stays in your family and continues to support the next generation.
The Wealth Gap and Why It Matters
Let's start with some context.
According to the Federal Reserve, the median wealth of white families is nearly six times higher than Black families. And it's not because Black families aren't working hard or making smart financial decisions. It's because of centuries of systemic barriers to wealth accumulation.
Historical Barriers to Wealth:
Slavery meant Black families couldn't own property or build wealth for centuries
Even after emancipation, Jim Crow laws and sharecropping systems kept Black families economically oppressed
Redlining prevented Black families from buying homes in certain neighborhoods in Wilmington and across North Carolina, blocking access to homeownership (the primary way most American families build wealth)
Discriminatory lending practices made it harder for Black families to get mortgages, business loans, or credit
The GI Bill, which helped millions of white families build wealth after WWII, largely excluded Black veterans
Current Barriers to Wealth:
Black families are more likely to face predatory lending, higher interest rates, and unfair financial practices
Black-owned businesses receive less funding and face more barriers to growth
Wage gaps mean Black workers earn less than white workers for the same work
Medical debt, student loan debt, and other financial burdens disproportionately affect Black families
All of this means that when Black families do build wealth, it's hard-earned and incredibly valuable.
And that's exactly why estate planning matters.
What Happens Without Estate Planning
If you don't have a will or estate plan, here's what happens when you die:
North Carolina's intestacy laws decide who inherits your assets.
The state has a default formula for who gets what. It doesn't account for your family's unique circumstances, your wishes, or who you actually want to inherit.
For example, if you're married with children, your spouse gets half and your children split the other half. If you're unmarried with children, your children inherit everything. If you have no spouse or children, your parents inherit. If you have no living parents, your siblings inherit.
This may or may not align with what you want.
Your estate goes through probate.
Probate is a court process that can take months or years, costs money, and is public record. During probate, your family can't access your assets. They can't sell your house, access your bank accounts, or distribute your belongings until the court says so.
This creates financial strain on your family at a time when they're already grieving.
Your family could lose your hard-earned assets.
Without estate planning, your assets could be:
Tied up in court for years
Subject to estate taxes that force your family to sell property or businesses
Lost to creditors or legal claims
Divided in ways that don't make sense for your family
Your children's future is decided by a judge.
If you have minor children and you die without a will, a judge decides who raises your kids. It might be your parents, your siblings, your ex, or someone else you wouldn't choose.
That's not a risk worth taking.
How Estate Planning Can Protect Black Families
Estate planning is about control. It's about making sure the wealth you've worked so hard to build stays in your family and supports the people you love.
Here's what estate planning does:
Protects Family Property and Homes
For many Black families in Wilmington and across North Carolina, a home is the single biggest asset and the foundation of generational wealth. Without estate planning, that home could be:
Lost to probate
Divided among heirs in ways that force a sale
Subject to partition lawsuits where one heir forces the sale of the property
A will or trust ensures your home stays in the family and is passed down the way you want.
Prevents Heirs' Property Issues
"Heirs' property" is a major issue for Black families, especially in the South and in North Carolina specifically. It happens when someone dies without a will and their property is passed down to multiple heirs who all have fractional ownership.
This creates legal and financial chaos:
No one person has clear legal authority to sell, mortgage, or improve the property
Any heir can force a partition sale, which often results in the property being sold to developers or outside buyers for less than it's worth
Families lose land that's been in the family for generations
In North Carolina, heirs' property has been used to take land from Black families for decades (i.e., Freeman Park). Developers and investors target heirs' property because it's easy to exploit the legal confusion and force a sale.
A will or trust prevents this by clearly stating who inherits the property and under what terms.
Protects Family Businesses
If you're one of the 200+ people who showed up to the Wilmington Minority Chamber meeting, this is for you.
Your business is your legacy. It's your family's income. It's economic power in the Black community.
Without a clear succession plan through estate planning:
Your business could be tied up in probate
Heirs might fight over who gets control
The business could be forced to close or be sold
Everything you built is gone
Estate planning allows you to:
Designate who will run the business
Set up a structure that keeps the business out of probate
Minimize estate taxes so your family doesn't have to sell the business to pay taxes
Ensure your business continues to employ people and serve the community
Designates Guardians for Your Children
If you have kids, your will designates who will raise them if you die. Without a will, a judge decides.
This is especially important for Black families who may want their children raised by someone who understands their cultural identity, values, and experiences.
Minimizes Estate Taxes
Depending on the size of your estate, your family could owe significant estate taxes. Proper estate planning can minimize or eliminate those taxes, ensuring more of your wealth stays with your family.
Ensures Your Wishes Are Honored
Estate planning is about autonomy. It's about making sure your hard-earned wealth goes where you want it to go, not where the state decides.
Key Estate Planning Documents for Black Families
Wills
A will outlines how your assets will be distributed, who will raise your children, and who will manage your estate. Every adult should have a will, regardless of how much money they have.
Trusts
A trust is a legal entity that holds your assets and distributes them according to your instructions. Trusts are especially useful for:
Keeping assets out of probate
Minimizing estate taxes
Protecting assets from creditors
Providing for minor children or family members with special needs
Protecting family businesses
Healthcare Power of Attorney
A healthcare power of attorney designates someone to make medical decisions on your behalf if you're incapacitated. This is critical for ensuring your medical wishes are followed and your family isn't left making impossible decisions.
Financial Power of Attorney
A financial power of attorney allows someone to manage your finances if you're unable to do so. This prevents court intervention and ensures your bills are paid and your assets are protected.
Living Will
A living will outlines your end-of-life wishes, including whether you want life-sustaining treatment, resuscitation, or artificial nutrition. This takes the burden off your family and ensures your wishes are honored.
The Importance of Working with Black Attorneys
Only about 5% of attorneys in the United States are Black. That number is even lower when you look at equity partners at law firms or attorneys practicing in rural areas.
In North Carolina, Black attorneys make up a small fraction of the legal profession, and Black women attorneys face even more barriers to entry and advancement.
This matters because:
Representation Matters
When Black families work with Black attorneys, they're working with someone who may better understand the unique challenges they face. Black attorneys understand heirs' property issues. They understand systemic barriers to wealth. They understand why estate planning is so critical for Black families.
Economic Power Stays in the Community
When you hire a Black attorney, you're supporting Black-owned businesses and keeping economic power in the community. Just like you'd support a Black-owned restaurant or salon, supporting Black attorneys is part of building community wealth.
The Legal Professional Needs More Black Attorneys
The legal profession has a serious diversity problem. By supporting Black attorneys, you're helping ensure the next generation of Black lawyers has role models and pathways into the profession.
If you're going to invest in estate planning to protect your family's wealth, consider working with a Black attorney who understands your community and your goals.
Common Myths About Estate Planning
Myth: "Estate planning is only for rich people."
Not true. Estate planning is for anyone who owns anything, has children, or cares about what happens to their belongings after they die. Even if you don't have a lot of money, a will protects your family.
Myth: "I'm too young to worry about estate planning."
If you have children, own property, or have any assets, you need estate planning now. Accidents and illnesses happen at any age.
Myth: "My family will just work it out."
Maybe. But without legal documentation, "working it out" often means court battles, family conflict, and years of stress. Don't leave it to chance.
Myth: "Estate planning is expensive."
It doesn't have to be. A basic will costs a fraction of what your family would spend on probate or legal disputes if you die without one.
Starting the Conversation About Estate Planning
I know estate planning isn't an easy conversation. For many families, talking about death, money, and inheritance feels uncomfortable.
But avoiding the conversation doesn't protect your family. It leaves them vulnerable.
If you're struggling to start the conversation with your parents or family members, here's how to approach it:
Frame It as Protection, Not Death:
"I want to make sure our family is protected if something happens. Can we talk about estate planning?"
"I've been thinking about how to make sure the house stays in the family. Have you thought about that?"
Focus on Your Business or Your Kids:
"If something happened to me, who would run the business?"
"If something happened to both of us, who would you want raising the kids?"
Lead by Example:
"I just set up my will and it gave me so much peace of mind. Have you thought about doing one?"
Resources and Next Steps
If you're ready to protect your family's wealth and build generational security, here's what to do:
Talk to an estate planning attorney. Look for someone who understands Black families, heirs' property issues, and business succession planning. If you can, support a Black attorney in your community.
Need help finding a Black attorney? Here are some resources:
National Bar Association: The nation's oldest and largest association of predominantly African American lawyers. Their attorney directory can help you find Black attorneys in North Carolina. Visit nationalbar.org
North Carolina Association of Black Lawyers (NCABL): Connects you with Black attorneys practicing across North Carolina. Visit ncabl.org
Minority Corporate Counsel Association (MCCA): Directory of diverse attorneys including estate planning and business law specialists. Visit mcca.com
American Bar Association Goal IX Directory: Search for diverse attorneys by practice area and location. Visit americanbar.org/directories
Supporting Black attorneys isn't just about representation. It's about keeping wealth in the community and ensuring the next generation of Black lawyers has the support they need to succeed.
Gather your financial documents. Bank statements, property deeds, business documents, retirement accounts. You'll need all of this to create an estate plan.
Have the conversation with your family. Talk to your spouse, your kids, your parents. Make sure everyone knows your wishes.
Join the Wilmington Minority Chamber (if you're a business owner). Connect with other Black entrepreneurs who are building wealth and protecting their legacies.
Support Black professionals. Whether it's attorneys, accountants, financial advisors, or other service providers, to boost economic power in the community.
This Black History Month, let's talk about building wealth, protecting legacies, and making sure the next generation of Black families in Wilmington and across North Carolina has the foundation they deserve.
