Meaningful Ways to Leave a Financial Legacy for Your Heirs

Here are 5 meaningful ways to leave a financial legacy to your heirs: 

1. Start with Professional Guidance

Don’t try to do this on your own. It’s important to have the right team in place to get proper guidance to avoid costly mistakes. This professional team should include a financial advisor, an estate planning attorney, and a CPA. 

2. Have Open Communication with Family Members

Next, it’s important to have an open communication. Make sure that you’re communicating with your family. They need to know where everything is, and how to access it in the event of an untimely demise. Furthermore, you need to ensure that you have an updated estate plan in place. This goes along with updating your wills and other ancillary documents. If you created them 20 years ago when your kids were babies, you need to ask yourself if they reflect your current wishes. A lot of clients in addition to the standard will also write a love letter to their children and/or grandchildren. This is a step beyond a traditional estate planning document. A love letter is a side document where you tell your heirs more about your love for them, the values that are important to you and your family, and how you want them to use their inheritance to enrich their lives and carry on family values and traditions. 

3. Consider How Your Family Will Access the Money

Since it’s hard to tell what kind of people our children will grow up to be, we urge clients to look at the distribution dates of their estate or of their money to their kids. A lot of times the money is disbursed at milestone ages. However, if you don’t think that is wise for your family, then maybe that money should be left in a trust. You can name a friendly trustee and leave that family money in a trust for perpetuity.  

4. Utilize Life Insurance

Another way to leave a meaningful financial legacy is through life insurance. Nowadays, it’s more common to see term-life insurance. However, if you want a more permanent solution that would be a whole life policy

5. 529 Plans as a Financial Legacy

Another great way to leave a financial legacy is for education. Many grandparents these days are setting up 529 funds for their grandchildren. That is a fantastic way to show what’s important to you and your family, and to leave a financial legacy for your heirs.

Have more questions? Contact Us

Missie Beach, CFP®, CDFA®
Senior Financial Advisor

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By Published On: June 16, 2023

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