By Founder & CEO Scott J. Savage.
Estate Planning, Multi-Generational Planning, Legacy Planning, Gifting Strategies, and Philanthropy Planning. Have you checked these boxes yet in your financial plan? If you are lying awake asking yourself in the quiet of the night, “What should we do with our wealth when we die?”, please read on because in this article you will find potential answers, next steps, and resources.
It's natural to have this nagging question appear out of the blue and then fade for a time, only to resurface when you least expect it. Often it’s the part of the financial plan that you will “get to later.” With this article, my hope is that “later” turns into today once you see how approachable and meaningful this process can be. Here is some encouragement to get you started:
Be intentional – As you tackle the question of your legacy, take time to contemplate what is important to you and your family. Thinking in terms of purpose instead of people first is often very clarifying and exciting.
Create a legacy plan – The best answers to the question of legacy come in the form of a plan, not a single answer. You have options. Consider them and decide which ones are best for you. I believe in the saying, “Failing to plan is planning to fail.”
It’s not one-and-done – This can be a very freeing reality. The plan you create today does not have to be your forever plan. In fact, it likely will not be your forever plan. Revisit your plan every few years and adjust it as your life changes.
Procrastination is the enemy – Now that you know your plan can and will shift over time, it takes the pressure off of the need for life-long perfection. Waiting only makes the task loom larger. There’s peace of mind in knowing that you have set forth guidance for heirs and beneficiaries.
Benefit society sooner than later – Why wait until you’re gone to put your wealth to use in a meaningful cause? Many people take great joy in seeing the impact their wealth is making while they are living. Well-conceived and well-executed philanthropic advice can make an astounding impact right now as well as later.
Prepare for the transfer of wealth – Ideally, the capital that you pass on to the next generation grows, surpassing your own impact on society. On the other hand, it can be a minefield if inheritors aren’t prepared for the responsibility. You can help prepare them now for the potential bias against “silver spoon” wealth, or the guilt and shame that can come from unearned riches.
When you’re ready to begin the journey of a well-conceived legacy plan, please let us know if we may be of help. In the meantime, here are some books and references to prepare you for what you’ll encounter. These are not hypothetical situations. We see the stories in these books play out often.
Worthy Reading:
Engaged Healthy, Wealthy & Wise by Coventry Edwards-Pitt
This book imparts lessons from inheritors and their significant others on how to navigate love, family wealth, and forging their own paths. Edwards-Pitt writes about experiences I have encountered advising many SJS clients through the years. Parents and grandparents instinctively want to help their kids and grandkids, and unwittingly “rob” them of the need to “figure it out” on their own. Emerging adults gain a sense of identity by getting a job, paying their bills, renting an apartment, and often, falling in love. When these emerging adults are shielded from these experiences, they never build their own identities. They aren’t prepared, often lack the tools, and therefore hide from the burden of responsibility. Edwards-Pitt also heroically challenges the status quo in most planning circles that prenuptial agreements are a necessary risk management box that those with inherited wealth must check. Through her experience, she concludes that the human risks of prenuptial agreements outweigh the legal risks. Based on my experience, I agree with her conclusion.
The Myth of the Silver Spoon by Kristin Keffeler
In her book, Keffeler tackles the emotional realities of inherited wealth. Better still, she offers up tactics to transcend negative thinking and behaviors that can come from wealth and money. These include putting words to difficult feelings and gaining a healthy sense of identity. She also delivers experiences and insight into how affluent parents can raise children to avoid entitlement and helplessness while helping them discover and sustain their own personal vision for a fulfilling, impactful life. If you are at the child-rearing or grandchild-enjoying stage of life, this book is a must-read because it not only provides identifiable stories that teach, it gives you methods that, as a family, you can talk about and practice. It’s an ounce of prevention that is worth a pound of cure.
I’d like to say that I "followed all of the parenting rules," and did all this right. But as a parent of four grown children and two young grandchildren, I admit to violating some of the advice offered by these two authors. But their guidance to establish a plan and prepare a vision for “when I’m gone,” that I have done. It can be an amazing journey when done with the right advisor. I’d love to help you and guide you and make it a positive, rewarding experience in your life. If you are open to the offer, let’s get started by understanding your unique circumstances, and having an open, honest discussion. That’s the backdrop, and from it can come the best advice.
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