Why Think 3 Generations Ahead?
The problem many families face: Parents work hard their entire lives, accumulate 2-3 properties, and then pass away. The children inherit the apartments, argue about the division, and eventually sell everything and divide the cash. Within 10 years, the money is gone and the family wealth evaporates.
The Wealthy Family (Family Office) Approach
- Generation 1 (Parents): Build the foundation - acquire income-producing properties domestically and abroad
- Generation 2 (Children): Manage the portfolio, expand it, and receive passive income
- Generation 3 (Grandchildren): Inherit a protected legal structure (family trust) not just scattered cash
3 Layers of a Multi-Generational Portfolio
Stability Layer: Domestic Properties
Purpose: Steady income + low-interest mortgage security.
- • 2-3 income-producing apartments in major cities
- • Current yield: 3-4% gross (after tax)
- • Long-term appreciation: 2-3% annually
- • Can leverage up to 70% LTV to fund Layer 2
Growth Layer: International Properties
Purpose: Higher yield + currency diversification + tax optimization.
- • Income properties in Georgia/Batumi (8-12% yield)
- • Properties in Budapest (6-9% yield + appreciation)
- • Commercial properties in Europe (Germany, Poland)
- • Currency exposure: EUR, USD, GEL
Protection Layer: Legal Structure
Purpose: Protection from liens, organized inheritance, tax optimization.
- • Family Trust in Cyprus/Singapore
- • Foreign Holding Company in Netherlands/Estonia
- • Advance tax planning to prevent double taxation
- • Legal separation between assets (Asset Protection)
Numerical Example: The Levy Family (3 Generations)
Starting Point: Generation 1 (Parents, 2025)
Monthly Passive Income
- • Domestic: $1,950/month (after tax)
- • International: $1,500/month (before tax)
- Total: $3,450/month = $41,400/year
Projection 2045: Generation 2 (Children, Age 50)
Assuming average appreciation of 3% annually + reinvested rental income:
+ Passive income of $8,500/month
3 Classic Mistakes in Inter-Generational Planning
Mistake #1: Buying All Properties in Parents' Name Only
The problem: When they pass away, children pay inheritance tax + need to divide among siblings.
The solution: Transfer properties while living (lower capital gains tax) + family trust.
Mistake #2: Concentrating Only in One Country
The problem: Overexposure to political/security situation + high taxation.
The solution: At least 30% of portfolio abroad (currency diversification + tax benefits).
Mistake #3: No Will/Inheritance Planning
The problem: Children argue, lawyers consume the estate.
The solution: Family trust + clear will + family discussion in advance.
How RealFix Builds Multi-Generational Portfolios
Step 1: Map Existing Assets
We analyze what equity you have in existing properties and how to leverage it.
Step 2: Build Global Mix
Finding income-producing properties abroad that match your risk and tax profile.
Step 3: Legal Structure
Connecting with specialist attorneys for family trusts and foreign holding companies.
Step 4: Ongoing Management
Managing the portfolio over time + updates according to tax/regulatory changes.
Want to Build Wealth That Lasts 3 Generations?
The RealFix team specializes in building multi-generational real estate portfolios. We do not just sell properties - we build family structures that stand the test of time.
For Israeli Tax Residents
Multi-generational planning for Israeli families requires careful consideration of both Israeli and international tax laws. Family trusts and foreign holding structures should be established with proper legal counsel to ensure compliance. Have family in Israel interested in building generational wealth? Share this guide with them.
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Legal Disclaimer
The data and returns presented are for illustrative purposes only and are based on past performance or market estimates. This information should not be considered as a guarantee of returns, investment advice, or a substitute for individual tax advice. Real estate investment involves risks, including regulatory changes, currency fluctuations, changes in property condition, and local market conditions. RealFix does not guarantee the displayed returns and is not responsible for losses resulting from investment. It is recommended to consult with a Certified Public Accountant and tax consultant before making investment decisions. E&OE.
