What Are Legacy Goals?
How do you want the world to remember you? What would you like to do with your wealth after you pass away? For most people, leaving a financial legacy often means providing for the next generation. Whether you’d like to split everything evenly among your kids or distribute your funds with other goals in mind, you’ll need a plan. That’s where estate planning comes in – and it’s a bit more complicated than it may first appear.
What Do You Need to Know for Estate Planning?
If you want to achieve significant goals as part of your legacy, you’ll need to do substantial planning to make sure everything goes as intended. At first glance, it may seem rather simple. Just get a will or a trust, right? Well, it depends on what you want to accomplish. After a person passes away, their wealth will normally be passed on to their next of kin or given to people or organizations specified in their will. If you haven’t planned what to do with complicated assets like real estate or businesses, things might not go as intended.
Just like most forms of planning, the early bird gets the worm. If possible, speak with a financial advisor or estate planning attorney if you have particularly complex assets. For example, small business owners may be worried about protecting their estate from legal issues or interfering creditors. Advisors will be able to guide you down a path toward better protection of these assets. Usually, it’s also recommended to hold a meeting with your next of kin and any others who will inherit a part of your legacy.
For those with a substantial legacy, estate taxes are often a point of concern. Taxable assets include most forms of wealth that people typically include in their estate such as life insurance policies, IRAs, and annuities. Estate taxes can be very high in some states, so it can be very helpful to meet with an advisor during the planning process.
Should You Worry About Legacy Goals?
If you’ve already got plenty of things to worry about, legacy goals may not be a priority. When thinking about their retirement, most people would probably prefer to secure their own future first. However, if you have a sizable estate and care about where that money will go in the future, it’s probably a good idea to speak with professionals about your legacy planning. This is especially useful if you have a specific amount in mind – or just a bare minimum – that you intend to leave behind. If this describes you, then you may want to take your estate planning a little more seriously.
At the end of the day, financial planning comes down to finding the best solution for you and your loved ones. Whether you decide to increase the risk of your portfolio and shoot for higher returns or take the safe route and secure what you’ve amassed so far, speaking with a professional in this field will help you pick the best option for your situation.