Wealth is often squandered by heirs.
You have worked hard your entire life.
You have made wise financial decisions.
You have grown your money and will have a sizable estate as the result.
You have taken the steps to create an estate plan with an advance health care directive, a general durable power of attorney, a last will and testament, and a revocable living trust.
Is this enough to set your descendants up for success?
According to a recent Forbes article titled “How To Turn Your Estate Plan Into A Legacy Plan,” traditional estate planning may not be enough.
A legacy plan actually creates a process for the preservation of your wealth over time to protect and preserve it for your descendants.
Have you wasted your time and money on your traditional plan?
You can incorporate the work you have already done into your legacy estate plan.
Put Together a Legacy Team.
Creating an effective legacy plan will not occur in a vacuum.
You will need wise counsel.
This involves a team of professional advisors working together to help you succeed.
Who should you have on your team?
The essentials include a tax accountant, a financial advisor, and an experienced estate planning attorney.
You may require more experts on your team, depending on the needs of your family.
Think With a Legacy Mindset.
You are thinking long-term.
This means you should consider process rather than plan.
A good plan is essential, but you must also establish processes for a thriving legacy.
Think “process” versus “plan”?
What does this mean?
Traditional estate planning is often seen as complete, once estate planning documents have been prepared and signed.
In reality, however, that is just the beginning.
Understand What You Have Already Created.
Your team will be able to tell you what your current plan does and does not do.
Does it distinguish between legacy and non-legacy assets?
If not, you should.
In almost all situations, these should be handled differently after you die.
You should also plan how to continue to grow your wealth and how to leave an effective legacy through your assets.
Create and Execute the Plan.
Using the knowledge you now have, create a legacy plan.
The right team will help you establish a legacy plan to preserve your wealth for generations to come.
Reference: Forbes (August 22, 2018) “How To Turn Your Estate Plan Into A Legacy Plan”