A Smarter Legacy With Embedded Finance

The author of this article says that using “embedded data” can simplify estate planning and reduce frictions, taking away the need for extensive legal processes. While a certain natural scepticism is in order, the article demonstrates how technology is encouraging some to be optimistic on what can be achieved.

The following article, on intergenerational wealth transfer
and planning, comes from the co-founder and CEO of AAZZUR, Philipp Buschmann. The
editors are grateful for this article from a figure who has
featured in these pages before. The usual editorial disclaimers
apply. Email tom.burroughes@wealthbriefing.com
and amanda.cheesley@clearviewpublishing.com

Most people want to leave something behind for their children and
grandchildren – something more than memories. Generational wealth
isn’t just about having money to pass down; it’s about creating a
financial system within the family that allows future generations
to thrive. And in today’s world, smart legacy planning is being
reshaped by a powerful tool: embedded finance. Here’s how
companies can take advantage and offer customers a worthwhile
investment.

Automate wealth growth

One of the biggest challenges in building generational wealth is
consistency. Life gets busy, and financial planning often takes a
backseat. Embedded finance tools, such as automated investing
platforms and AI-driven savings accounts, remove the guesswork.
Users can set up recurring contributions to a diversified
portfolio that aligns with their long-term goals, ensuring wealth
accumulation without constant manual intervention.

For example, micro-investing apps allow family members to invest
spare change automatically, turning everyday transactions into
wealth-building opportunities. Moneybox has taken the
initiative and widened the opportunity for spare money to convert
into big wins with features such as Junior ISAs that enable
parents to grow their children’s money from the moment they are
born.

Make wealth transfer seamless

Traditional estate planning can be complex and time-consuming,
often leading to disputes or delays in asset distribution. With
embedded finance, digital tools can simplify the process and make
family conflicts a thing of the past. Smart contracts powered by
blockchain technology can ensure that wealth is transferred to
the right beneficiaries automatically, without the need for
extensive legal processes.

For instance, programmable trusts can distribute funds based on
specific conditions, such as reaching a certain age or achieving
a milestone (for example, university graduation). This
ensures that the next generation receives wealth responsibly and
at the right time.

ADAPT is a notable company that has put this into action. It
is a cloud-based platform that enables estate planning
professionals to efficiently gather client information and
generate custom legal documents. ADAPT offers dynamic interviews
and customisable questionnaires, facilitating the creation of
wills, trusts, and other essential estate planning document

Teach financial literacy through everyday
transactions

The biggest reason generational wealth often doesn’t last past
the third generation isn’t a lack of money – it is a lack of
financial knowledge. Embedded finance can help solve this by
integrating financial education into daily life.

For example, family banking apps can allow parents to set up
digital allowances for their children, where they earn money
through chores and learn budgeting skills in real time. Some apps
even offer investing features that allow children to see how
small investments grow over time, fostering a long-term mindset
about money.

Protect assets with smart insurance and fraud
prevention

It is important to emphasise that wealth protection is just as
crucial as wealth creation. Embedded finance tools offer
automated insurance solutions that protect assets without the
hassle of paperwork or annual renewals. For example, AI-driven
insurance policies can adjust coverage dynamically based on
real-time needs, ensuring that family assets – whether
properties, businesses, or investment accounts – are always
protected.

Additionally, embedded fraud prevention technology can help
secure accounts from unauthorised access, ensuring that family
wealth is safeguarded from cyber threats and financial scams.

Create passive income streams with embedded
payments

Passive income has become a hot topic, and it can be brought to
the next level. Embedded finance makes it easier than ever to
create revenue streams that can benefit future generations.
Whether it’s real estate crowdfunding platforms, dividend-paying
stocks, or peer-to-peer lending, financial tools are now
integrated into apps that allow families to generate wealth
without heavy lifting.

For example, platforms that offer embedded rental management
solutions can help families own and manage property with minimal
effort. Rent payments can be automatically collected and
reinvested into other assets, creating a self-sustaining
financial ecosystem.

The future of wealth is embedded

The beauty of embedded finance is that it removes many of the
barriers that once made wealth management a daunting task. It
automates the process, making it easier to build, protect, and
pass down wealth in a way that is both seamless and intelligent.

By integrating these smart financial tools into your legacy
planning, you’re not just leaving behind money – you’re
leaving behind a financial system that ensures families thrive
for generations. The key is to start early, embrace technology,
and make financial literacy a core part of your offerings. With
embedded finance, building a lasting legacy isn’t just for the
ultra-wealthy; it’s for anyone willing to take a smarter approach
to managing their money.

The future of wealth isn’t just about what you have – it’s
about how well it works for you and the generations to come.

About the author

Philipp Buschmann is a serial entrepreneur with extensive
experience of working in challenger banking, financial services,
IT and energy across the world. Buschmann holds an MBA from
the London Business School. He is passionate about
entrepreneurship and loves exchanging ideas, insights and
discussing FinTech”s future. He is a speaker at fintech
events.