Most people see an attorney when it’s time to establish an Estate Plan. Once complete, they leave with a binder full of documents that are typically stored in a safe at home. Unfortunately, for many families, this is where the planning stops and where problems lay dormant. Nine out of ten traditional inheritance plans will fail according to the Heritage Institute — that’s ninety percent! Inherited wealth is typically gone by the third generation. If you prepare for lasting family wealth, it will help alter this course.

While Estate Planning and Legacy Planning may sound similar, there are important distinctions. Estate Planning is focused on important legal documents that help ensure efficient management and transfer of your financial assets at incapacity or death. While Legacy Planning includes this, the process is more focused on preparing the next generations with everything you consider valuable — think relationships, work ethic, family history, and core values. This level of planning captures your unique stories and helps prepare generations to come with the values that created everything of importance you will ultimately leave behind someday.

Ensuring your heirs are prepared for wealth transfer requires intentionality. Here are good questions to get you started:

  • What values did generations before me pass down to me?
  • What values do I want to ensure my heirs remember about me?
  • What wisdom principles did I learn that led to values I hold dear?
  • How can I help my heirs understand how our family wealth was built?
  • How can I help ensure my children are still loving each other long after I’m gone?

An Estate Plan is a prepared reaction to an inevitable event, while a Legacy Plan is a proactive approach while living to preserve all you value for generations to come. With proper preparation, inherited financial assets can become a blessing instead of a curse. If you want to equip your heirs to leverage what you leave behind and thrive after you’re gone, create a Legacy Plan that captures your wisdom and values long before any financial wealth transfers. Prepare to pass it on!

Download the free guide: 6 Keys to Create an Impactful Legacy

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