Are they Prepared to Inherit Your Money?
Today we are talking about Legacy. By and large, most people have their spouse and then eventually their kids as beneficiaries.
God has blessed you with accumulating some money. We can’t take it with us. “Naked we came into the world, and naked we shall return,” so at some point, our money is going to move on to our beneficiaries.
But are they prepared?
Here are some tough questions to help you process.
- What do you and your spouse want to be remembered for?
- What values do you want to live out in front of your family?
It’s wise to pass on your values before you pass on your money.
Do you have a legacy plan? Unfortunately, a beneficiary form alone is not a legacy plan.
So here are some more questions to help you process.
- How much inheritance are you leaving?
- Will that amount be a blessing or a curse?
Sometimes, people who have money issues, really have heart issues that money just exposes.
What do you hope your inheritance will accomplish in the lives of your heirs?
- Have you talked about this with your heirs?
- What are your current giving practices?
- Is charitable giving in your legacy plan?
It’s important to communicate your plans and desires with your heirs while you’re still around to do it.
One day there’s gonna be a family meeting to talk about your finances.
- The question is, do you want to be there for it or not?
- Do you want to have input on this or now?
We like to meet with clients and their children together and help facilitate this conversation. A lot of people think this conversation will be awkward, so they avoid having it.
In a perfect world, your children would know ballpark numbers of what to expect. They should not be blindsided by an overlarge number or an underwhelming number that they were not expecting.
In a perfect world, if you are doing some charitable giving in your estate plan, everyone should know about it.
If you are leaving money to charity, are your children the ones to give it away, and are they prepared for such a task?
The main takeaway here is to spur on conversation within your family.
There are way too many financial fights after someone dies because of a lack of communication. People thought things would get handled in a certain way, and then their expectations are not met and there is a family squabble.
After working with numerous clients, we have learned that if you have this kind of family meeting, you can avoid litigation in the courts about your estate.
Our role is to help improve communications between all generations involved in your planning.
If you want help with this, reach out to us and start the conversation. We would be honored to help you plan your legacy.
The information provided is not intended as tax or legal advice. Figures shown are for illustrative purposes only furthermore, the information nor the illustrations provided may not be used to avoid any tax penalties. This content represents the general views of Christy Capital Management and should not be regarded as personalized investment advice Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice. On March 1, 2022, Retirement Benefits Institute, Inc., and a portion of its contents merged with Christy Capital Management Inc. Brandon Christy, former President of Retirement Benefits Institute, is also the current President of Christy Capital Management, Inc, a registered investment adviser.