Estate or Legacy Planning? Uncover the Path to Your Perfect Plan
Many people use the terms legacy and estate planning interchangeably, but they are actually 2 separate things.
- Estate planning ensures your assets are distributed according to your wishes after death.
- Legacy planning, on the other hand, is the process of creating a lasting legacy—something that will outlive you.
In this article, we will discuss the key differences between legacy and estate planning, why it’s important to understand these differences, and how to create a comprehensive plan that reflects your unique values and goals.
What Is Estate Planning
- Estate planning is the process of making a plan to dispose of your assets after you die.
- This usually includes making a Will, a legal document specifying who will receive your assets and how they will be distributed.
What Is Legacy Planning
- Legacy planning is a bit different.
- While estate planning is focused on the distribution of your assets, legacy planning is focused on what you want your life to mean.
- Legacy planning is about creating a lasting legacy that will live on long after you’re gone.
- It’s up to you what your legacy will be.
- Creating a legacy plan can be a very personal process.
- It involves creating a plan for how you want to be remembered after you are gone.
- It is about more than just your finances – it is about your values, your life story, and your legacy.
Key Differences Between Estate Planning and Legacy Planning
- Estate Planning ensures that your loved ones are cared for financially after your death.
- Estate Planning typically includes creating a Will or trusts to distribute your assets according to your wises and making arrangements to care for your minor children or disabled family members.
- Legacy Planning ensures that your legacy lives on long after you’re gone.
- Legacy planning, however, is focused on ensuring that your life’s work and values will be carried on after you’re gone.
- This can include writing a memoir, creating a family foundation, or establishing a scholarship fund in your name.
How To Create A Comprehensive Plan That Reflects Your Unique Values and Goals?
Creating a comprehensive plan that reflects your legacy plan is an important step in ensuring that your assets and values are passed down to future generations as you intend.
Here are some tips to help you create a comprehensive plan that reflects your unique values and goals:
1. Identify Your Values and Goals
- It’s important to identify your core values before creating a comprehensive plan.
- What do you want your legacy to be?
- What do you want future generations to learn from you?
- Answering these questions will help you create a plan that reflects your values and goals.
2. Consider Your Assets
- Estate planning typically focuses on transferring assets, but legacy planning goes beyond this to consider how you want your assets to be used to support your legacy.
- Do you want to leave a financial legacy, or do you want to leave a legacy of philanthropy?
- Consider how your assets can best support your values and goals.
3. Involve Your Family
- Legacy planning is not just about you; it’s about your family and future generations.
- Involving your family in the process can help ensure that your plan reflects the values and goals that are important to everyone.
- Bring them into the conversation early on and ensure everyone understands your wishes.
4. Work With A Professional
- Creating a comprehensive estate/legacy plan can be complex, and working with a professional can help ensure that your plan reflects your wishes and is legally sound.
- A qualified estate planning lawyer can help guide you through the process and provide valuable insights and advice.
By following these tips, you can create a comprehensive plan that reflects your legacy plan and ensures that your values and goals are passed down to future generations.
Speak to us over video consultation via Lawyer Anywhere for advice on your Estate Planning Matters today!