Leaving a Legacy
Since everyone would like to be remembered, I propose the question: “What is it you would like to be remembered for?” It is nice to leave a six or even seven-digit legacy to your loved ones, but is that most important? I say no! Previously, we mentioned the concept of an Ethical Will. Let your children and grandchildren know what it is that makes you tick while you are alive. You can even set up a video camera in front of the loveseat and tell your story on tape.
This will generate a video message that can be preserved for generations to come or even shared online. The best part is that it is in your own words.
That is especially helpful if you cannot type or handwrite your message.
Following those precepts can sow the seed of eternal life to your heirs. In this chapter, we are going to address the financial aspects of leaving a legacy.
Over the next decade, experts believe approximately $25 trillion in wealth will be transferred from the elder parents of the baby boomer generation. This will represent the largest inter-generational wealth transfer in history. (Source: The Allianz American Legacies Study) The study consisted of a partnership between Allianz Life Insurance Company, and Dr. Ken Dychtwald, Ph.D., President of Age Wave,
and Harris Interactive® Dr. Dychtwald designed the study while Harris Interactive conducted the survey. A random sampling of
baby boomers and their parents were asked to identify how they define leaving a legacy.
The objective of the study was to quantify the hopes, fears, priorities, and motivations related to the passing of assets between the two generations. (For more information about The Allianz American Legacies Study, please visit www.allianzlife.com) Many are uncomfortable with discussing the topic of “leaving ” an inheritance, but they are comfortable talking about the idea of leaving a “legacy.” Although you may be talking to your parents about this, you probably are not having a “real” conversation about it. You may even be the one child your parents turn to for all decisions, say the “firstborn.”
Some are comfortable leaving a slightly larger portion of an estate to the child who has “done the most ” for mom and dad in their golden years. I suggest you seek a Christian advisor who has great listening and communication skills to assist you with the “wealth transfer ” options.
You can sow a seed of eternal life to your heirs with proper guidance. In this chapter, we are going to address the financial and spiritual aspects of leaving a legacy. As the subtitle dictates “…it ’s what you keep” that matters most. A well-designed estate plan will allow your assets to pass to the next generation with potentially mitigated estate and income tax consequences. There is a difference between income tax evasion and tax avoidance. Proper planning serves a purpose in this regard. Many insurance organizations have solution-based programs that assist clients in attaining their goals. The purpose of a program such as this is to address the common
issues that plague individuals as they develop their estate plans. Many people do not know who to contact or even realize they have an estate issue often until it is too late. Ask your advisor about this plan.
For the sake of being cliché; No one plans to fail, but many have failed to plan. The chart below shows famous Americans who did not do proper estate planning. Notice the individuals on this list. Many were financially astute, but just did not know of the estate settlement woes or just did not get around to it in
enough time”
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