What is a legacy plan and why should you have one
As we grow older and realize that our time in this world is short we tend to do everything to make it worth-while. We all want to leave something meaningful and valuable for our close ones and the next generations to come. Our goal is to plan our children’s future, provide for them, and to make sure that they are taken care of when we are no longer there for them. Here is where the legacy plan plays its part.
What is a Legacy Plan
Simply put, the process of planning and distributing assets of a person to their loved ones is called legacy planning. Having a legacy plan in place means having prepared a strategy of asset distribution to your beneficiaries, but especially leaving something meaningful for the people that surrounded you. It’s important for everyone to leave an impactful and long-lasting legacy that aligns with the values that each person upholds.
Often legacy planning is identified with estate planning, however, despite the fact that these terms are synonymous in many ways, there is one main difference between them. Legacy planning is much more than a simple allocation of estate, assets, and property. This process focuses on values and what a person leaves behind regardless of their financial background. It is much more about the feelings that your heirs have when they think about you rather than the money or material asset. This type of legacy may have lasting effects on your loved ones.
Why is Legacy Planning Important
Having a carefully planned and detailed legacy plan can help you avoid many unnecessary processes, such as probate – the court-supervised process of validating the will. Most legacy plans rely on trusts which eliminates the process of probate altogether. It is smart to have a legacy plan in order to:
- Take control over your assets and assign a person to inherit them
- Avoid probate
- Minimize the estate taxes or court costs so that your heirs can inherit the greater deal of your assets
- Preventing any arguments or disputes among your heirs
- Leave something valuable to your family and close ones
How to Make a Legacy Plan
Once you understand the importance of having a legacy plan it is fairly easy to start this process. It is recommended that you get a financial advisor who would help you build a smart plan to ensure a strong financial legacy for your family, especially your children and grandchildren.
Start by making a legacy plan checklist and follow it to gather the required information and legacy documents. All you need to do is to follow these steps:
- Determine your values and the legacy you want to leave.
- List all your assets.
- Plan how to distribute them – who will inherit your assets?
- Think about the ways to leave the world a better place – have you considered donating to charity or helping people in need?
- Do you have any specific preferences regarding your medical care?
As soon as you have these questions answered you are one step closer to securing your legacy plan.
How Can Stornest Help in the Process
It is never too early to think about planning your legacy. Anyone would agree that it’s better to protect yourself from unexpected circumstances rather than leave things to chance. Luckily there are many digital tools for legacy planning that can support you in this process. For example, Stornest is this type of digital tool where you can store any type of legacy document and be certain that it’s safeguarded. Stornest allows you to:
- Upload and store any types of documents;
- Assign one or more beneficiaries;
- Keep your files safe with Zero-Knowledge Proof.
On top of that, it’s very simple to use and you can get a free trial to test it out. So, don’t waste your precious time and take action to make sure you leave a valuable legacy to your loved ones.