A Step-By-Step Guide to Creating a Legacy Plan Made Simple: What You Need to Know
What is a Legacy Plan?
A legacy plan is a plan that defines the vision and values of an individual. It is a way to communicate your values and goals to those who will come after you. It can include anything from a will to a succession plan.
A legacy plan is an individual's final wish to distribute their assets, and it is usually created in the form of a will or some other legal document. When drafting a legacy plan, it is important to think about how your assets may be distributed and what you want to happen with any specific items that you own.
A will is one way to create a legacy plan, but there are other options as well. A living trust can be used for estate planning purposes and help avoid probate court proceedings after someone dies. Another option is to set up an irrevocable life insurance trust. This type of trust provides protection by ensuring that beneficiaries receive funds if they become disabled or die before retirement age.
How to Create a Succession Plan for Your Business
Starting a business is not an easy feat, and it takes a lot of time, effort, and money to get it off the ground. Many entrepreneurs are not aware that they need one until it’s too late for succession planning. As with most things in life, succession planning is much easier when you take the time to plan ahead for your business.
“Succession planning is a process where you identify who will take over your company if something happens to you or if you decide to retire from the company.”
There are many steps involved in succession planning, but identifying who will take over your company is one of the most important ones.
A succession plan should include three things:
1) A clear vision for the future of the company, including what you want it to become and what you want it to do.
2) The skills needed by future leaders to make this vision a reality.
3) A strategy for developing these skills in people who are already part of your team.
The succession plan should cover what will happen with the business in terms of finances, operations, management, and any other matters that need to be addressed.
The Complete Steps for Creating a Legacy Plan as an Individual
A legacy plan is a plan for what to do with your assets and property after you die. It's important to think about this as early as possible. Once an event happens, like incapacity or sickness, it can be challenging, if not impossible, in the case of death to ensure your wishes are met.
When you establish a legacy plan, your heirs will be afforded the chance to get what they need from your estate without going through a lengthy probate process or being subject to the whims of the state’s laws.
We considered three types of assets when creating your legacy plan: financial, tangible, and intangible. Financial assets include bank accounts, stocks, bonds, mutual funds, IRAs/401(k)s, pensions, and retirement funds. Tangible assets include homes and cars. Intangible assets include art collections or family heirlooms.
The steps to creating your legacy plan:
1) First, determine what you want your legacy to be. What do you want your loved ones and others to remember about you?
2) Decide who will inherit your assets and how they will be distributed. This can involve dividing your assets between family members, friends, or charities.
3) Next, make sure that your assets are in order. You should check with the IRS for any taxes owed, update wills and trusts, and make sure that all of your accounts are up-to-date.
4) Finally, designate someone who will take care of the details. This person can be a family member, friend, or representative/executor that you hire through an estate planning attorney.
Remember, if you have not yet created one, it is never too late to start.
Considerations When Choosing the Right Professional to Create Your Legacy Plan
The right professional for your legacy plan is important to consider. They help you understand the benefits of creating a plan and help you understand how it will impact your life.
Are they qualified and knowledgeable in this field? Another consideration is if they have the time, resources, and expertise necessary to complete your plan in a timely manner.
When choosing the right professional to create your legacy plan, there are many considerations. The great news is many professional advisors are waiting to help you.
How to Work With Moulden Law
Moulden Law is a law firm that specializes in estate and business planning. We developed a three-step process to help our friends and clients with the estate planning process.
The first step is educating and informing legacy thinkers about the risks and opportunities of estate planning. The second step is to inspire our legacy planners on how they can take action and be proactive about their future. The third step is to work with clients to create a customized plan to meet their needs and goals for themselves, their family, and their legacy.
Ready to get your estate plan started or need more information, schedule a discovery call with me? Where you and I dive a little deeper into your situation to discover the plan that fits you.
~ Tenicia Moulden
Moulden Law Blog is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site, you understand that there is no attorney-client relationship between you and Moulden Law. Moulden Law should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
