There is not a one size fits all for estate and legacy planning. Over the years, meeting with my clients and reviewing their life and wealth management goals, I have clients desires which range from wanting to ensure their family is left with everything, to clients who wish to leave their mark through the impact they have had in the lives of their families, to those who wish to leave a legacy through charitable giving.
Unfortunately it is not an easy subject to discuss, and as a result many avoid planning at all. This can be disastrous. It is important to determine what and how you want to leave your legacy, and then take the steps to ensure the success of that plan.
It is said death and taxes are the two most certain things we face in life. However with the right estate planning you can maximize the transfer of your wealth upon your passing. The ways to ensure the success of your legacy transfer are:
- Being open and honest in discussing your wishes with your family. While many agree this is important, few follow through with this step.
- Create, and properly maintain legal documents that will lay out your wishes effectively. Powers of Attorney, Representation Agreements for healthcare directives, Wills, and potentially Trusts (either living or testamentary).
- Implement strategies that allow you to create your legacy while you are still alive to see the impact. Whether that is assisting your children with paying off their mortgage, or helping with your grandchildren’s education, or giving to your community.
- Establish and create a charitable giving plan as part of your estate plan which can balance, through tax advantages, the ability to provide for your loved ones and donating to a favourite organization or foundation.
- Consider shifting a portion of your assets from fully taxable investment vehicles into a tax exempt insurance policy, thus significantly enhancing your estate plan. Your loved ones benefit from insurance protection, reduction in ongoing tax liabilities, and a much larger estate. Insurance can also be used as a tool to reduce the cost to your estate of unavoidable taxes.
Talk to us at Insightful Wealth Group about which strategy is best to suit the needs of you and your loved ones.