Legacy Planning 101

We all aspire to leave a lasting impact on the world, whether through our work, involvement in charities, or our children. It is important for us to leave behind something meaningful, both physically and emotionally. Therefore, let’s ensure that your legacy is safeguarded and directed toward what matters most to you.

What is Legacy Planning?

Let’s begin by defining legacy planning and its role in our overall financial strategy. Legacy planning is a financial strategy of deciding to whom your assets go after you pass away and to continue your legacy.

The term legacy planning sometimes goes by another name: estate planning. Both are the same, yet legacy planning is more inclusive and it’s more of an in-depth financial strategy.

Learn More: Blueprint to a Relaxed Retirement: 5 Essential Pillars of the 210 Financial Plan

Importance of a Legacy Plan:

Having a legacy plan can alleviate concerns about what will happen to your assets after your passing. It can also assist your family members with managing future taxes for your beneficiaries. Creating a legacy plan allows you to feel reassured that your legacy matters. At 210 Financial, we emphasize the importance of planning for every aspect of your life, so when unexpected events occur, you are prepared.

What Should be Included in a Legacy Plan:

A crucial first step in starting your legacy plan is to create a comprehensive list of all your assets. This list should include bank accounts, 401(k) plans, life insurance policies, and any other financial documents you possess, along with their locations. Additionally, include contact information for relevant institutions or advisors.

It’s important to document any debts you have so your beneficiaries are fully aware of the financial situation they will inherit. Make sure to review your retirement accounts to ensure they are current and add them to your list.

Learn More: Estate Planning

Legacy Planning and Financial Advisors:

Legacy planning and financial advisors go hand in hand, much like peanut butter and jelly. They make a great team. Collaborating with a financial advisor helps you develop a comprehensive legacy plan and provides strategic advice on managing your assets. Advisors like those at 210 Financial works with you to build wealth and enhance your legacy.

After meeting with a financial advisor to create your legacy plan, the next step is to put that plan into action by involving an estate attorney to assist with drafting your will and other necessary legal documents for your legacy. Choosing where you want your estate to go and with whom it’s time to follow that plan and make the documents that make that can execute that plan when you pass.

Learn More: The Value of Working with a Financial Advisor

Evaluate Family Dynamics:

If you want to pass down your estate to your family members as part of your legacy plan, it’s important to consider your family dynamics. Avoiding surprises for your next of kin is crucial and can help ensure a smooth process. Be sure to discuss your plans with your family, so they are aware of what to expect.

Charitable Giving:

Your legacy doesn’t have to go to your next of kin; it can be directed to a charity instead. If you are charitable, having a legacy plan is still important. It works the same way: instead of naming a beneficiary who is your next of kin, you simply name a charity.

Learn More: Tis the Season of Giving: Charitable Contributions and Tax Benefits

Consider Changing Legal and Tax Policies:

Policies and life circumstances change, so it’s important to stay informed about these developments and adjust your legacy plan as needed, preferably on an annual basis. Meeting with your financial advisor each year can help you update your financial, retirement, and legacy plans, ensuring you remain proactive and in line with current policies.

Conclusion:

Let’s create a legacy plan that safeguards what you’ve built over your lifetime and ensures your legacy endures. It’s vital to have a legacy plan in place, regardless of where you choose to distribute your assets. Take the time to ask questions and plan for the future so that you are prepared when the time comes. Meet with an advisor at 210 Financial to help plan and protect your legacy.

Meet with an advisor at 210 Financial today!

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Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333.