As you work through your financial planning process, you’ll likely hear the term “legacy planning.” In previous years, estate planning was how financial professionals defined the process of transferring your assets to a loved one. In many ways, people consider the terms interchangeable, but legacy planning may include additional planning that is not involved in traditional estate planning.
What Is Legacy Planning?
Legacy planning is the process of dividing your assets among the individuals you have chosen to do so–just like you would in estate planning. However, financial advisors have moved away from saying estate planning as much simply because the term “estate” may feel like a process that is only focused on for the wealthy. Additionally, legacy planning has often included other elements such as charitable giving or includes more than the necessary process of dividing up assets.
Importance Of Acquiring Legacy Planning Services
Legacy planning allows people to choose how their wealth and assets are distributed once they pass away. Having a plan in place avoids probate, which can be a lengthy and costly process for your loved ones. A legacy plan takes the guesswork away from your loved ones and gives them the peace of mind that they are carrying out your final wishes without the stress of making decisions on the fly.
One of the ways to help avoid probate is by relying on a trusted professional. By working with a financial advisor, you can identify which trusts may be suitable for you, and you can even learn ways to help protect your assets through proper tax planning. By working with a financial professional to craft your legacy plan, you’ll identify suitable strategies for achieving your financial goals.
How To Begin
The very first thing you must do when you start legacy planning is to gather all relevant information. Such information will include a list of all of your assets and where they are located. Some areas of consideration may consist of life insurance policies or other business accounts. Of course, a financial professional can help you identify which information is relevant.
Next, you’ll need to answer various questions regarding your assets and how you plan to divide them up among your heirs. A few questions you should answer are:
- Who are your heirs and beneficiaries?
- Do you want to donate to charity?
- What are your medical care preferences?
Such questions are a great way to start creating a legacy plan that works for you and help you identify precisely what you need to include as part of your plan. Once you have a general sense of what you want, you’ll need to talk to an expert. From there, you can craft a customized legacy plan that takes into consideration your financial plan and your wishes.
Speak To Professional Wealth Management Advisors
If you’re searching for a wealth management advisor, please contact us at Campbell Wealth Management Inc. We understand that legacy planning and other financial planning are critical to your and your family’s future. Please reach out to us today to learn more about our services by giving us a call at (703) 782-5058 or by requesting a consultation online.
This document is provided for informational purposes only. It is not intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Campbell Wealth Management, Inc. does not provide tax or legal advice; individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.
