By Joe Betcher
In society, making a difference is important. At the end of life, people hope to have left this world a better place than when they were born. How a person makes that mark depends upon each individual’s personal priorities, but everyone wants to contribute something to society. Leaving a legacy, no matter what it may be, is the opportunity to establish how a person would like to be remembered long after they are gone.
One legacy that each individual has the power to leave to future generations is a financial legacy. It may require discipline and planning, but it is extremely important to helping the next generation. Not only will it ensure there is a safety net for the next generation’s financial security, but it will also instill the importance of continuing to pass along the same legacy. A financial legacy is about protecting family and showing them how to protect their families.
When a person dies, a financial process takes place no matter what. It is extremely important to plan by design, not by default. Uncle Sam is usually the default beneficiary; therefore, it is necessary to minimize his inheritance as much as possible. Careful planning helps establish the safest routes for the benefactor’s finances and allows for a customizable plan. So, whether the individual wants to give to charities or just to family, planning protects both the benefactor and the beneficiary.
In regards to children, financial planning really protects them from themselves. Having a plan in place will reduce or eliminate complications. Effective estate planning will support them, but also make them take care of themselves.
In regards to business, financial planning allows a business owner to transfer a business to a pre-determined successor, but it will also protect against creditors. Owning a business is extremely challenging, but the business legacy does not need to end just because the owner passed away.
Whether a plan is customized or simply default, a financial legacy will be left for future generations. There are many options to safeguard it. Life insurance and estate planning are two commonly used methods for protecting future generations. Young or old, death is unpredictable, so it is important to start now.