Legacy planning is the process of preparing for the transfer of your assets and values to future generations. While many people associate legacy planning with wealthy individuals, it is something that everyone should consider, regardless of their net worth. Here are five basic tips of legacy planning to help you get started.
- Understand what you want to leave behind
The first step in legacy planning is to define what you want to leave behind. This includes both tangible assets, such as property, investments, and personal belongings, as well as intangible assets, such as your values, beliefs, and family history. By understanding what you want to leave behind, you can begin to develop a plan for how to distribute your assets and share your values with future generations.
- Develop a comprehensive estate plan
A key part of legacy planning is creating a comprehensive estate plan. This includes drafting a will, setting up trusts, and designating beneficiaries for your retirement accounts and life insurance policies. An estate planning attorney can help you navigate the complexities of estate planning and ensure that your assets are distributed according to your wishes.
- Communicate with your loved ones
Communication is key in legacy planning. Make sure that your loved ones understand your wishes for your assets and values after you pass away. This can help prevent disputes and ensure that your legacy is carried out according to your wishes. Consider holding family meetings or creating written documents to communicate your wishes clearly.
- Consider charitable giving
Charitable giving is an important part of legacy planning for many people. By giving to causes you care about, you can leave a lasting impact on the world and inspire future generations to do the same. Talk to a financial advisor about ways to incorporate charitable giving into your legacy planning.
- Update your plan regularly
Legacy planning is not a one-time event. Your estate plan and legacy goals should be reviewed and updated regularly to ensure that they still align with your wishes and priorities. A good rule of thumb is to review your plan every 3-5 years or after any major life events, such as a marriage, divorce, or the birth of a child.
Legacy planning is an important part of preparing for the future and ensuring that your assets and values are passed down to future generations how you want them to be. By following these basic steps, you can develop a comprehensive legacy plan that reflects your wishes and priorities. Check in with our team if you have any questions about where to begin your legacy plan and what you should include.
This publication is not intended as legal or tax advice. Financial Representatives do not render legal or tax advice. Consult with a legal or tax professional for advice that is specific to your situation.