A legacy is something passed down from a predecessor to a future generation. There are many ways to leave a personal legacy. Regardless, one of the most powerful legacies you can leave is a financial legacy.
It’s pretty common for people to defer thinking about legacy planning till when they are approaching old age. It is a well-known fact that death is a reality and one never knows when it’s their time. Though it is discomforting to think about dying it is equally important to have a plan in place in the event of your death.
No matter how much you are worth, legacy planning is an important part of your overall financial and retirement planning and it’s never too early to get your affairs in order. Read on for four important steps to get organized and leave a lasting financial legacy.
1. Take a Personal Inventory
Having accumulated all kinds of assets and other things over the years it is crucial you make a list that accounts for all your belongings from your home to your personal items. This is usually the first step in getting organized so as to ensure you are not forgetting and leaving out anything of immense value.
2. Life Insurance
Life insurance protects you and your loved ones from the financial uncertainty of death or severe illness or disability. Getting life insurance is a cost-effective way of ensuring the financial security of your family or beneficiaries in the event of your passing. This is important if you have children or other family members who are dependent on you for financial support. It will provide an income for them in the event of your untimely death. If you have one already, do ensure that your beneficiaries are up-to-date and listed correctly.
3. Prepare a Will and Testament
Having a will is a significant step in securing the financial future of your loved ones. A Will is a legal document that coordinates the distribution of your assets and wealth after your death. A Will declares who the beneficiaries of your assets are and how your assets should be distributed. Having a Will protects your family or loved ones and makes it much easier to sort everything out when you die. In the absence of a Will, the process can be time-consuming and stressful as assets will be distributed according to state laws and the courts.
If you are yet to put your will together, get in touch with us for assistance over here.
4. Select The Right Estate Administrator
Your estate administrator or executor manages and administers your Will when you die. As such it is essential that you select an individual who is trustworthy, reliable and responsible. Many people appoint an executor such as their spouse or child without giving it much thought. To ensure your wishes are followed it makes sense to consider carefully who’s best suited for it.
Putting your affairs in order can be a difficult thing as no one likes to think about dying. Nevertheless, failure to put a plan in place can make life difficult and strenuous for your loved ones.