Transforming a Traditional Estate Plan into a Legacy

Transforming a Traditional Estate Plan into a Legacy

Responsible parties taking comfort in the fact that they’ve already gone the distance and created a traditional estate plan – a will, living trust, healthcare proxy and all the rest – might find their equanimity disturbed by a few statistics.

Here they are: seventy percent of your wealth is likely to be frittered away by the second generation, and ninety percent forsaken by the third generation after your passing.

What you need is a legacy plan. The traditional arrangements you’ve made have not been in vain, though – they provide the foundation for creating a legacy.

The first step is to build a team of legacy advisors. No, you don’t just pick your pals, however trusted: you’ll need experts in a range of fields. An attorney, a tax accountant and a wealth manager form the core of your team. You may need experts in family affairs, healthcare and other specializations depending on the particulars of your family’s case.

Our featured article emphasizes that more than anything else, legacy planning is a mindset and process is the key. Problems often arise in traditional estate planning because the plan is seen as premier – once accomplished, the task is finished. In legacy planning, the plan is merely the starting point. The structure you build to pass on your wealth must serve as a guide for future generations, not just provide them with largess to be disposed at will.

As the legacy team examines your assets and estate plan, recommendations will be formulated and changes made. One distinction that needs to be made – something not often done in traditional estate planning – is to separate legacy assets from non-legacy assets. When the inevitable day of your passing comes, these asset classes must be dealt with in different ways and the planning must be done well in advance.

For more information, please read:
How To Turn Your Estate Plan Into A Legacy Plan | Forbes


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