Legacy planning is more about preparation than the belongings we own. Clarity in your intentions and in the details of your estate helps to prepare loved ones’ hearts and eases the transition when you may no longer be around. Leaving a thoughtful financial legacy depends on how we communicate, designate, donate, and relate to our heirs.
Clearly Communicate
Having estate documents prepared that clearly communicate our wishes and plans beyond just the giving of items helps to secure the care of loved ones. Make sure to have a professional guide you so there are no gaps in your estate planning. Include specific directions and a list of any collectibles or valuables you will be leaving to be divided among family members.
Clearly Designate
Some thoughtful ways to plan and wisely steward your legacy include creating a beneficiary IRA for one or multiple beneficiaries to avoid distribution penalties or taxes. Naming a child as a beneficiary for an annuity can also provide an income stream from annuity payments over their lifetime. Another option is to take RMDs and reinvest them or take part of your RMDs and buy a second-to-die life insurance policy to provide for children when both parents have passed away. Designating the roles people will play is essential to ensuring your thoughtful planning is realized.
Clearly Donate
Give to the charities you care about by bequesting depreciated stock to a charity that can lower estate taxes, as well. A Roth IRA might not be the wisest stewardship because non-profit, 501(c)3 organizations don’t benefit from tax breaks as individuals do. Another thoughtful way to be generous is to start getting rid of items in your house that you can donate to a charity or give to those in need.
Clearly Relate
Don’t leave anything unsaid. Use our Letter of Instruction and Hope to My Loved Ones to help you communicate clearly the faith you want to pass on, which is vastly more significant than any belongings. Pass on individual letters and words of encouragement, helping your heirs to know the heart behind your decisions.
Having a Testate Estate
Thoughtfulness in your financial legacy is first and foremost in completing your estate planning, which includes a will so your heirs are not left without direction. Don’t leave your legacy and your heir’s future to chance.
