Many people want to accumulate wealth and pass it through generations. And although it's a great idea, it has complexities that need careful handling. Transferring wealth to the other generation can trigger a wide range of reactions, but it's the best thing anyone could do. But for you to do it more effectively, you need to prioritize financial legacy planning. Usually, legacy planning, also known as estate planning, involves ensuring the next generation is financially stable or secure. Unfortunately, most people don't know what legacy planning entails or how they should handle it. If you want to carry out successful legacy planning, here's what you need to do.
Handle Uncomfortable Discussions More Carefully
Legacy planning involves candid communication regarding estate plans. Actually, it involves preparing the heirs for their inheritance and also making them know how they could preserve your hard-earned wealth. Unfortunately, talking about your death can sometimes be a bit uncomfortable because your heirs would want you to live forever. But since it's a critical part of legacy planning, it's good to know how you could make it a comfortable conversation. Some inheritance topics are usually uncomfortable, but you need to handle them more carefully, so they can be more meaningful to your heirs.
Don't Assume Legacy Planning Is All About Money
Money is usually a critical topic in legacy planning. However, don't forget that legacy is not all about money. Although you have assets to distribute to your heirs, it's also good to leave behind values, life lessons, and wealth management skills that could improve your heirs' lives. Legacy planning is more diverse and somehow different from estate planning because it usually encompasses your entire legacy, which shouldn't be all about money. So as you sit down to plan your legacy, don't assume that money should be the only topic.
Make Your Conversations Formal
In most cases, legacy planning discussions are a bit informal, and they often take place in a comfortable environment. However, it's important to take it seriously. Contact your estate planning lawyer and invite them when discussing legacy planning because they will help your heirs understand it better. Let them guide you on how you could make those conversations legal. Where possible, let the attorney explain the probate process, how it works, and perhaps how your heirs could avoid it. Ensure your heirs develop a good relationship with the attorney since they could greatly help them when you pass on.