No matter how old you are right now, even if you are healthier than you’ve ever been in your life, it’s very important to plan for your family’s financial future after your death. You may already have a will, but if you haven’t worked with a wealth management professional on a legacy plan, you may be missing out on an opportunity to make the processes involved in asset distribution simpler for your family. Here’s what you should know. 

What Is Legacy Planning?

Legacy planning is a process that allows you to determine and spell out exactly how you want your assets to be distributed to your family and loved ones after your death. Whereas estate planning tends to focus on tangible assets, legacy planning also includes intangible things, such as ensuring that individual loved ones are bequeathed certain overall values or focusing on charities. Legacy planning may also include tax planning if your estate is subject to state and federal estate taxes, and if you want to skip the probate processes, you can set up trusts for individual family members instead of directly bequeathing specific dollar amounts. 

Do You Need a Legacy Plan?

Surprisingly, only four out of every 10 people in the United States have a will in place, and this can cause serious issues for families. If you don’t have a will or a legacy plan in place when you die, the state will determine where your assets go on your behalf, and the decisions they make may not be in line with what you want to happen. Furthermore, when the state is left to make these important choices, it can cause disagreements among those you leave behind, and in some cases, these disagreements lead to lifelong resentments. Everyone needs a will, and if you have significant assets, you also need a legacy plan. 

Your Family Will Thank You

Failing to put a legacy plan in place can leave difficult decisions to family members who are already grieving and who may not have the financial know-how to make the best decisions for their future. It’s important to remember that legacy planning is not simply deciding who gets what; it’s a complete plan that provides for their financial future, and it can span many generations depending on your wealth and your individual plan.

For example, if you so choose, you can opt to leave a sizable amount of funds in high-interest accounts, then allocate the interest to individual members of your family. You can set up trusts for your children and grandchildren that are distributed over time or in specific circumstances, such as their college education. With a legacy plan, you have the power to continue to provide for your family long after your death. 

If you want to make sure that your loved ones are financially stable, even after your death, a legacy plan is your best option. It’s truly a gift to your family, and it can ease their anxiety in one of the most difficult times of their lives. The best way to draft a legacy plan is to work with a wealth management professional who is familiar with the laws in your state.