As we all know, you can take a project to various different levels. When it comes to estate planning, you can cover the basics, but you could also go the extra mile and engage in the process of legacy planning. In this blog post, we will look at some of the specific distinctions between estate planning and legacy planning.
A bare-bones estate plan would facilitate postmortem asset transfers in some way. Most people use a last will, and this would be the most basic way to state your final wishes regarding the distribution of your resources.
There is a very simple type of trust called a revocable living trust that could be used as an alternative to a will, even if you are only creating a basic estate plan. You would not lose control of assets that you convey into this type of trust, and this is comforting to many people.
After you die, the assets in the trust could be distributed to the beneficiaries outside of probate. This process can be time-consuming, so people often try to avoid it.
It would also be possible to instruct the trustee to distribute assets over an extended period of time to preserve inheritances.
End-of-life issues will also be addressed in a basic estate plan. You would include a living will to state your life-support preferences. A durable power of attorney could be executed to name someone to handle your finances in the event of your incapacitation.
You could also include a health care proxy or durable power of attorney for health care to empower someone to make health care decisions for you if you become unable to make them for yourself due to incapacitation.
Legacy planning is a more comprehensive form of estate planning. When you craft your legacy, you shape the way that people will remember you after you are gone.
The facilitation of asset transfers will be part of it, and incapacity planning is also important for everyone. There are different ways to get assets into the hands of your loved ones, and you can make informed choices when you create your legacy plan.
Your legacy plan can be carefully crafted to leave a lasting impression. We will endeavor to provide some specific food for thought below.
It is easy enough to leave money to someone, but the gift of education may be even more meaningful. If a person has access to education, anything is possible. When you put your legacy plan together, you may want to facilitate educational opportunities for younger family members.
Throughout your life, you have probably been positively impacted by certain institutions. There may also be charitable causes that are meaningful to you.
When you plan your legacy, you could engage in acts of charitable giving. There are various different ways that you can go about it. Some people create charitable family foundations, and charitable trusts are sometimes utilized.
There is another type of will that many people are not aware of called an ethical will. These wills date back to biblical times, and they are used to leave behind moral and spiritual values.
Members of your family have probably come to you throughout their lives looking for guidance during difficult times. When you leave behind an ethical will, your insight and wisdom will be available to your family members even after you are gone.
If you have family heirlooms in your possession, they probably mean a great deal to you, and they will be greatly valued by your loved ones as well. You should carefully choose the appropriate caretaker for each item.
Throughout your life, you have had countless instructive experiences. You could record your personal memoirs and make the reminiscences part of your legacy plan.
Your loved ones will ultimately gain a better understanding of your thought processes, and your acquired wisdom will be available to succeeding generations.
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