You are undoubtedly familiar with the concept of estate planning; however, you may not be familiar with the concept of “legacy wealth planning.” The terms are related and often go hand-in-hand with one another. In essence, legacy wealth planning is an extension of your estate plan. A legacy wealth plan incorporates investment strategies for today, retirement planning for tomorrow, and estate planning for after you are gone into one large plan.
For those who are fortunate enough to have a moderate to large net worth in the Quad Cities Illinois, it is important to guard assets, grow those assets, and eventually transfer them to future generations. While each of these can be accomplished with an individual plan, it only makes sense to combine them into one large plan that provides better communication and long-term insight. Failing to combine your various plans can be counter-productive. Imagine, for example, that your investment plan calls for investing heavily in real property; however, not only will that leave you short on liquid assets for your golden years” but it will also create a problem with the equitable division and transfer of estate assets to future generations prior to your death, which is the goal of your estate plan. Legacy wealth planning aims to avoid conflicts such as these.
Ideally, a legacy wealth plan is based on advice from both your estate planning attorney and your financial advisor. All too often these two critical advisors do not work in concert with each other, causing your financial and investment plans to conflict with your estate plans. In addition, a legacy wealth plan can include components that attempt to pass down your ideals, values, and beliefs – your true legacy. Protecting, growing and eventually passing down your assets takes on more importance if you are also able to pass down the values that allowed you to amass the assets you are passing down. A legacy wealth plan can accomplish this by using tools such as a trust that includes terms that reflect your values and beliefs. If you believe in the concept of the “entrepreneurial spirit,” for instance, you could provide for trust fund distributions if a beneficiary wishes to start a small business or has come up with an invention he or she wishes to patent.
Talk to your estate planning attorney and your financial advisor about creating your legacy wealth plan today. The sooner you get started with legacy wealth planning the Quad Cities the more you, and your loved ones, will benefit from the plan.
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