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High importance is often put on passing down our families values, interests, and even our alma maters to our children. How often do we sit down and prepare our financial standing for the well-being of the next generation? Family legacy planning should be a crucial part of your financial advisement journey and overall estate planning. Here is some information on the basics of what family legacy planning is and how you can get started.


What is Family Legacy Planning

Family legacy planning is an essential stage of estate planning where a family takes the time to sit down and evaluate how they would like their wealth to be defined within their family. With a legacy plan, you set your goal for how you would like your family to understand your wealth. It sets a precedent for how future generations will interpret and maintain your legacy.


Why is it Important

Creating a legacy family plan is not just deciding where your money is slated to go, it is how your heritage will be sustained. This is your chance to set forth your priorities and expectations for your wealth. It is the best way to ensure that your wealth is not lost due to poor stewardship. Not only does it set your family up for success with money in the distant future but it will help the next generation in their day-to-day lives. This is the time to instill the core values of wealth management that you wish to see upheld by your family. Family legacy planning is an excellent catalyst for having these conversations on what a healthy relationship with wealth looks like.


When Should You Start

Family legacy planning is an important step to start while you are working on your estate plan. Begin having conversations and setting expectations on the best practices with money with your children. Foster a sense of transparency within your family when it comes to money management. This doesn’t just start during the teenage years either. These practices can begin in elementary school by introducing basic budgets and expenses.


The Next Steps

Begin conversations with your financial advisor, accountant, attorney, and family. Involve your family in fostering sustainable money management skills. Use those conversations to set your expectations of how you would like your legacy to be treated. Family legacy planning is not a once and done process; it is one that will take open collaboration and fluid planning. Begin taking steps with your children and family now to educate them on the responsibility that comes along with managing wealth.