Wealth of Wisdom, The Top 50 Questions Wealthy Families Ask
#3: What are the Key Considerations in Crafting Your Legacy
If you ask this question to 50 families of significant wealth, almost all would include some form of “values”. Some families may also consider the idea or strategies behind a well-tailored estate plan as the answer. You have probably seen estate planning attorneys and businesses offer to craft a legacy with a sound estate planning strategy, but there is a significant distinction that should be considered.
Your legacy is the character, qualities and deeds that come to mind when people remember you. Your legacy is not your estate plan. Your estate plan is a legal and financial arrangement that governs how your assets pass to others when you die.
Sure, your estate plan should mirror to an extent your value. Consider having 2 children whom you have equally shared your personal and family values of service, integrity and value. The first son blows his gifts, avoids education and responsibility and creates a life focused on himself. While the 2nd son serves his community, when possible, shares his gifts and creates a family for which to pass on the legacy he inherited. Is it within your legacy to share equally among those children?
n this case the author does share some answers on how to answer this question for yourself and your family, in the form of process (my favorite).
1. Clarify and identify your values
2. Write a personal mission statement
3. Have an individual, in person meeting, with each of your heirs
4. Add to your legacy those attitudes and behaviors you want to establish in yourself.
5. Eliminate from your legacy those attitudes and behaviors you want to eliminate yourself
6. Ask yourself, “Am I leaving heirs attached to each other legally and /or financially who wouldn’t want this restrictive arrangement?” If they don’t want it, don’t do it.
7. Be creative with the negativity of those within your legacy sphere.
8. If you prefer your childless and unmarried heirs leave their inherited assets to rising generations, nieces, nephews, cousins, tell them.
9. Consult with an experienced and creative professional to coordinate your legacy and estate plan.
Many families of significant wealth have shed tears trying to create a family base on values, without putting in the initial work to do so. This often takes up work front and a plan but for many it is ultimately the most important work in their lives. If you can sow with passion that brings you to tears, you can real with joy. The overall goal is to be kind.
*While the book “Wealth of Wisdom” was written by Tom McCollough and Keith Whitaker, the individual chapters may have been sourced from other authors. This chapter was written by Thayer Willis, who is likely not a household name, but is one of, if not the, most prominent legacy planners and practicing psychotherapists in this field. If you are interested in a more thorough identification and prioritization of your values, I highly recommend her book “Beyond Gold: True Wealth for Inheritors” specifically the “Values Identification and Clarification” exercise.
For a comprehensive review of your personal situation, please consult with your legal advisor. Neither Cetera Financial Specialists LLC nor any of registered representatives may provide legal advice.