Legacy planning is a form of estate planning that can mean more than money on a number of different levels. Obviously, we all need financial resources, and you make sure that your loved ones receive their inheritances in the ideal manner when you devise your legacy plan.
For high net worth families, this will involve wealth preservation because the estate tax can take a heavy toll. In 2016, the estate tax applies to transfers that exceed $5.45 million, and the maximum rate is 40 percent. There are things that you can do to mitigate your exposure if the value of your estate exceeds the amount of this exclusion.
Whether you are exposed to the estate tax or not, when you are putting your legacy plan together, you can also take steps to make sure that your loved ones do not burn through their inheritances too quickly .
Once you have taken care of the financial end of things, you can address matters of the heart, mind, and soul when you are engaged in your legacy planning efforts.
Family History
Older people have memories that other younger family members simply do not. And much of that is lost if no one takes the time to record the history of the family.
When you are devising your legacy plan, please consider this. If you write down the family history that you remember, you will be doing your family a service on both ends. Younger family members will have access to the family history, and your departed ancestors always be remembered.
You could chronicle the family history for its own sake, but you can also share your personal lessons and experience with the history of your family as a backdrop. This would provide a glimpse into your own personal thoughts. At the same time, you would be introducing family members that the younger generation has never met.
It can also be cathartic to record your memoirs. And if you don’t want to actually commit the memoirs to writing, you could make audio recordings and tell your stories in your own voice.
When it comes to family history, you may have tangible objects that have a great deal of significance. Family heirlooms can told significant monetary value in many cases, but the items are truly priceless to the family members who have passed them along generation by generation.
People who are on your inheritance list have probably commented about certain heirlooms that are in your possession. You may know that one of those people would be a good caretaker for the heirloom going forward.
Plus, it can be very meaningful to find out that you inherited an heirloom that you always admired. This type of gift can have enormous emotional significance.
Educational Opportunities
When a person is young, future college expenses can be a source of concern. You could potentially set aside assets that could be used to provide educational opportunities for your younger family members when you are planning your estate. This is a great way to be remembered, and the gift will be shared by the community at large when your family members apply their knowledge.
Charitable Giving
There are many worthy causes and institutions that can always use financial assistance. When you are contemplating your own mortality, you may decide that you would like to make a difference.
You can give to charitable causes in a number of different ways. Many people use donor advised funds, and charitable trusts can also be part of your legacy plan. A private foundation could also be an option depending on the extent of your resources.
Learn More About Legacy Planning
A well-constructed legacy plan can have a very positive impact on your family after you are gone. We have looked at a few possible components in this blog post, but there are other things that you can do to create this impact.
Our firm has prepared a comprehensive report that will provide you with added layers of information about the value of legacy planning. The report is free, and you can access your copy quickly and easily through this website.
To get your copy of the report, click this link: Charlotte, NC Legacy Planning.
John’s practice focuses on the use of Wills and Living Trusts in Estate Planning to help individuals protect their families and preserve their legacies after their deaths, but his practice also focuses on the critical issues of protecting individuals with dementia or other diminished capacity, assisting individuals in qualifying for Medicaid and other government benefits to offset the costs of long-term care, and providing special needs planning.
John is admitted to practice law in North Carolina, South Carolina, Kentucky, and Ohio, and he is accredited by the Department of Veterans Affairs.
- What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
- How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
- Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022
