Estate planning is often thought of as “how do we protect our assets” when we pass away and leave them to our loved ones. While this is certainly a key (and important) aspect of estate planning, there is much more to having a well-rounded estate plan. A great estate plan takes into account both your assets and your legacy.
Generally speaking, most people have an idea of what they want to accomplish with their estate plan. They know they want to make sure their hard earned assets go to their loved ones in the ways they want. In essence, everyone does some type of “legacy planning” when they put together their estate plan, even if they only focus on their assets.
Often times when people go to an estate planning attorney, they already have a good idea regarding what they want to accomplish with their estate plans. But it is generally focused on their assets. When the conversation can expand to include their wishes for what they can do for their children, it is the beginning of true legacy planning.
However, if people are too rigid and not willing to reconsider some of their options, they might not get the best estate plan for themselves and their families. This is especially true, if people are set in the workings of their plans, instead of its end results, as Financial Advisor discusses in "All You Can't Leave Behind."
The key to effective estate planning is to combine “legacy planning” with traditional estate planning (assets). It includes both the person’s assets and their legacy wishes. This gives a much more rounded plan that meets all the needs of the family.
When people are willing to consider different methods of distributing their estate, they have an opportunity to change their legacy. A legacy is more than what people give to others in their estate, it is about your wishes and your dreams for the future of your family. It is also how others remember you well into the future.
Including legacy planning in addition to traditional estate planning can change how people are remembered. Being remembered and passing on your non-tangible assets is an entirely new dimension for most people. Leaving a legacy is much more than assets, it’s how you want to be remembered well after you are gone.
It is very important to have this discussion early on with your estate planning attorney so they can build your wishes into your overall estate plan. When your attorney understands your wishes prior to understanding your assets, a complete plan can be put together for you today, tomorrow, and for future generations.