Inheritance Beyond the Balance Sheet: An Ethical Will
Updated: Sep 21
The Why, What, and How of an Ethical Will
This year has been a challenging one to grapple with. On one hand, the markets have performed exceptionally well. This morning, the WSJ reported there are more millionaire 401(k)s than ever before.1 For many Americans—especially wealthy, employed, light-skinned ones—things have been great.
But many people look at their growing portfolios with mixed feelings. Yes, they’re grateful their wealth has increased. But they’re also uncomfortable that this growth seems to coincide with significant pain for others. Every day brings headlines about deportations, extrajudicial killings, and domestic militarization. How do we reconcile personal financial success with disappointment and horror at what’s happening to those who don’t share our financial security?
First, consider charitable giving. Nonprofits have never needed your support more, as federal funding for many social programs is being cut.2 And consider direct giving to people in your community who need support, even if those contributions don’t earn you a tax deduction.
But I also encourage you to think beyond your bank account. Consider the world your family will inherit, not just the newly minted million dollar 401(k). As social stratification worsens and estate taxes become increasingly irrelevant, your children are more likely to inherit substantial wealth—and less likely to understand the economic insecurity facing most people. Without intentional guidance from you, they may never grasp the values that matter beyond financial success.
That’s where an ethical will comes in. Unlike the financial assets detailed in your estate plan, an ethical will passes down what money can’t buy: your values, your perspective, and your hopes for how your family will use their privilege. It outlines what you want to be remembered for and what you want your heirs to continue building. In other words, it ensures that wealth isn’t the only thing that compounds across generations—your principles can too.
An ethical will isn’t as formal as traditional estate documents like your testamentary will or trusts, and there are no legal requirements. You can write different versions for different people. You can video record it or express it through art.
As this tumultuous year comes to an end, think about what your legacy should be beyond your bank balance. It has never been more important to ground yourself in the good you’ve seen throughout your life and provide direction for the next generation to build upon it.
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