What Is Your Legacy Plan?
While it may not be pleasant to think of one’s own passing, having your affairs in order can help ease the burden on friends and family, when the time comes, and can contribute to your own peace of mind knowing you have done all you can to prepare. There are many factors that should be considered when trying to create an effective and comprehensive legacy plan. Some considerations include:
- Instructions on your own care in sickness
- Guardians for your minor children should both parents pass
- Protection from creditors
- Charitable contributions
- Continuation of a family business
- Reducing or eliminating tax
- Maintaining family harmony
- Legacy creation and support of future generations
In addition, all these factors should integrate appropriately with your retirement income planning and your investment decisions.
Even if you already have a legacy plan in place, you may want to conduct a review. Decisions made years ago may not accurately reflect your current wishes. Legacy plans are not for the significantly wealthy alone. If you have children in your care or a business you wish to leave to future generations, it is important that protections and guidance are put in place now and are not put off until your retirement years. It is always a possibility that you may not have the luxury to last throughout the entire life expectancy table.
A poorly executed legacy plan, or the lack of one at all, could leave those you most care about to suffer needlessly in your absence. Be sure to work with a CFP™ professional or another experienced professional to gain control of your estate plan.
The preceding content was originally published on the Financial Planning Association © Web site, www.FPAnet.org.