Why Legacy Planning Is the Best Gift You Can Leave Your Children

We all desire to leave behind a legacy as parents. However, despite our best intentions, legacy planning is often neglected, leading to multiple problems for children in their parents’ absence. Legacy planning is essential and should be done in advance to safeguard your children’s inheritance and ensure that they’re ready to manage it.

Why is Legacy Planning Important?

If you were wondering why is legacy planning important, then here are a few pointers worth considering in this regard.

1) As a parent, leaving a legacy is a must since it will serve as a financial foundation for future generations.

2) Legacy planning will help you ensure the safety of your children’s inheritance while making sure that their future needs are taken care of.

3) It is always best to plan your legacy early. This is because life is uncertain, and you can never predict the future.

4) Starting estate/legacy planning early will help you invest strategically for the future financial well-being of your children.

5) Proper legacy planning will help prevent future disputes while providing clarity amongst dependents and heirs.

Now that you have an idea regarding the importance of legacy planning, here are some tips that will stand you in good stead.

Tips for Smart Legacy Planning

Here are a few things that you can consider in relation to legacy planning:

1) If you have young/minor children, consider setting up a trust to manage their inheritance upon your demise. This will only be operational until they become adults.

2) Consider ongoing financial support in the form of monthly payouts for family members/children with chronic illnesses, handicaps/disabilities, and other issues.

3) Always holistically view your assets before starting your legacy/estate planning process. Your children may not even live in the properties you invested in or use the jewellery you bequeath to them. Have an honest conversation and liquidate these assets to invest the money elsewhere for their benefit, if necessary.

4) Create a will that specifically outlines the transfer and distribution of your assets in order to avoid future controversies.

5) Always ensure that your wealth and assets are completely accounted for and without any tax liabilities when you pass the same onto your children.

6) Always time the transfer of wealth and inheritances in a manner where everyone benefits from it at the right juncture in their lives.

7) Consult a legal and financial expert in order to get the job done smoothly.

Also, when it comes to family heirlooms, precious artefacts, artwork, collector’s items, and other things that you are passionate about, take a pragmatic approach. If your children are interested in preserving the same, then it works fine. If you feel otherwise, pass them down to museums, organizations, or fellow collectors/connoisseurs (through a sale).

Conclusion

Legacy planning is serious business. You should ideally start with a will that spells out who gets what and how they should use it. This will be a good starting point for leaving behind a precious legacy for your children, not just monetarily but also in terms of invaluable memories and life lessons.

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