The Importance of Financial Legacy Planning

For many investors, making sure their loved ones are protected after they pass is a top priority. Creating a plan that dictates how their assets and wealth are bequeathed reduces stress for their family and verifies their last wishes are followed. Developing a legacy planning strategy is an effective way of organizing these affairs.

What Is Legacy Planning?

Legacy planning describes the process many high-net-worth individuals utilize to determine who they want their assets bequeathed to and how they want that to happen. Unlike estate planning, which allows people to create trusts and wills, legacy plans involve making specific arrangements that address generational and family-oriented concerns, including:

Education
Childcare
Pet care

Why Is Legacy Estate Planning Important?

Creating a financial legacy plan before you pass is vital for ensuring your assets and wealth go to who you want them to go to. But the importance of having one extends beyond that. Here are some instances where having an plan helps individuals and their beneficiaries:

Estate Plans Reduce Family Fighting
The passing of a loved one is a stressful time for families and can be made more challenging if siblings and other relatives fight over assets. Finalizing a financial legacy plan efficiently designates your property and stocks to specific individuals. Without one, your family and friends will likely fight over your items in probate, racking up significant legal fees and damaging relationships. An estate and legacy plan allows you to determine who should receive something—and who shouldn’t.
Financial Legacy Plans Protect Children
While it’s not fun to think about, having a well-constructed legacy estate plan can help protect your young children in the event of your untimely passing. These strategies not only allow you to dictate when they receive your assets, but also let you name guardians until they’re 18. Without one, the courts will determine who will raise your children.
Estate and Legacy Planning Reduces Taxes
Implementing an estate plan is all about protecting your loved ones, and that includes making sure the tax impact is minimal. Legacy planning allows individuals to create an efficient transfer of wealth that reduces Uncle Sam’s impact.

What Do You Need to Build a Financial Legacy Plan?

Developing a legacy estate plan is a comprehensive process that requires careful consideration. Here are some important steps to take when creating your strategy:

Inventory Your Assets

While building your legacy estate plan, you want to make sure you’ve included all of your valuable assets. Creating an inventory list of your tangible and intangible assets is a good way of chronicling what you want bequeathed, such as:

Homes and property
Cars
Collectibles
Bank accounts
Stock portfolio
Life insurance policies

You would also want to include any potential liabilities, including mortgages and debt. Having a comprehensive list of what you owe allows your executor to alert creditors after you pass.

Determine What Your Family Needs

After carefully tracking your existing assets, take time to determine what your family will need after you’re gone. Writing a will, purchasing a life insurance policy, and naming legal guardians for your children are just some of the things that help protect the people that matter most.

Review Your Beneficiaries

Making sure the right people are included is vital to creating the best plan for your loved ones. Take time to determine who you want to receive your assets. Skipping this step could lead to unwanted people receiving your wealth.

Consider Working With a Professional

There’s no reason to develop your legacy plan by yourself. Partnering with a reputable financial advisor helps streamline the process and can give you key insight into tax-saving strategies.

Secure Your Legacy With Hobart Wealth

Our team takes pride in working with clients to develop a financial legacy plan that best suits their needs. Contact us today to schedule your free consultation and start protecting your loved ones.

Schedule My Free Consultation

Build Your Financial Legacy Plan With Hobart Wealth

You’ve worked hard to earn your wealth and assets and deserve the opportunity to determine who receives them after you pass. The Hobart Wealth team takes pride in working with clients to create a legacy estate plan that ensures an efficient transfer of wealth to the next generation. Our Certified Financial Planners work with trusted attorneys to develop a strategy that:

Verifies your wealth and assets are bequeathed based on your wishes
Eliminates the chances of costly probate
Protects your wealth from estate and capital gains taxes
Establishes guideline for beneficiaries

With over 18 years of experience, our team knows the importance of protecting a family’s long-term security. We empower our clients to make the best financial decisions for the present and future.

How We Develop Your Estate and Legacy Plan

Trying to create a financial legacy plan on your own increases the chances of leaving someone out or forgetting to account for an important asset. Hobart Wealth offers a comprehensive legacy planning strategy designed to guide you through the process and account for what matters most. We build your plan by following these steps:

Consultation

Getting to know the goals and scope of your estate is the first step in our process. We schedule a consultation where one of our advisors asks you about the people you want to provide for and how you want to distribute your wealth.

Financial Legacy Plan Development

We understand that proper legacy planning is important to our clients. The Hobart team has established partnerships with qualified estate planning attorneys; we work with them to verify your will and other essential documents are drafted to meet your needs.

Implementation

Our priority is creating a plan that transfers the maximum amount of your estate directly to your beneficiaries. We carefully manage your financial plan to protect your family’s long-term interests and goals.

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