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The Fundamentals of Legacy Planning

Author: Baum Financial
by Baum Financial
Posted: Jun 01, 2017
legacy planning

Most of us want to make a positive difference in the lives of our loved ones even after we depart. Legacy planning allows you to do just that. It ensures that your beneficiaries respect your last wishes after your death. No wonder, it is a crucial part of any successful retirement plan. From the allocation of wealth to the procedures relating to its transfer to the appropriate beneficiary, legacy planning may have multiple aspects. The approach uses different strategies and tools for the efficient management of your wealth. It also involves complicated legal procedure and financial planning, and that is why you should outsource the task to an expert and hire a company that specializes in legacy planning services. However, before you start searching for a suitable service provider, learn about the fundamental components of legacy planning:

Creating a Will

A will is a legal declaration of the ways you would like to distribute your assets among your heirs/ chosen beneficiaries. Your will may also contain details of the manner in which you would like your properties to be managed in the future.

Estate Planning and Building a Trust for the Will’s Proper Execution

A trust is a third-party entity that is responsible for holding the assets on your behalf. This is the best way to ensure that the posterity does not misuse your hard-earned assets. Estate planning is designed to ease and speed up the transfer of ownership. Besides, it will also help streamline expenses and minimize taxes.

Life Insurance

Life insurance is a significant part of legacy planning. If you choose the right policy, it will benefit you during your lifetime and beyond. When you live, it will generate tax-free income for you, and when you are not there anymore, your beneficiaries may get a share of the liquidated amount.

Tax-Friendly Investments

It is also crucial for you to invest your assets in a manner that will enable you to optimize your tax benefits. This strategy not only helps to increase your income during your lifetime but also lets you save on your assets. Your designated beneficiaries can eventually get a part of this savings.

Although it is not difficult to understand the importance of legacy planning, people often postpone the process till it's too late. But as far as legacy planning is concerned, the earlier you begin the process, the better will it be. You will have to set your goals and expectations, document your will, and give clear instructions as to how you would like your beneficiaries to manage the assets after your demise. A financial planning strategist is the best person to guide you through the process. So, avoid any further delay and consult a legacy planning service provider right away. Today's small step will let you keep your legacy alive even when you are not around. And that is what we all want, isn’t it?

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Author: Baum Financial

Baum Financial

United States

Member since: May 03, 2017
Published articles: 2

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