Have you thought about your legacy? It may be daunting for some, or empowering for others. “Legacy” is defined by Merriam-Webster as follows: “a gift by will, especially of money or other personal property.”
A gift.
Think of your legacy as a gift… to yourself. It’s yours – you control it, you nourish it, you cherish it. Now how would you like to see your gift passed on? Ultimately, you have the last word in how you wish to leave your legacy and with whom you wish to share it.
“Accenture estimates that $30 trillion will pass from boomers to Millennials over the next 30 years…”
Are you planning to pass your estate down to your children when it’s appropriate? To simplify the process, invite your grown children to join the estate-planning discussion. Is there a better way to prepare your children for their future than educating them while you’re navigating the planning process, while you are available to communicate your intent? You may find, perhaps (with the proper guidance and assistance), that your legacy will be received as you wished.
Keeping with that train of thought, it may be best to speak with your family about their wishes. It’s possible they do not wish to be included in the planning process and would prefer to find happiness in forging their own path without financial backing. Some people find an abundance of sudden wealth to be overwhelming for their personal lifestyle and goals. Rather than submersing your child(ren) in boat-loads of money, you can encourage them with short-term financial support, such as schooling, housing, travel, or business ventures.
“Sting just revealed that most of his $300 million won’t end up with his six adult children. ‘I certainly don’t want to leave them trust funds that are albatrosses round their necks,’ the musician told the Daily Mail in June of 2014.”
Sting’s approach falls within the same concept: rather than leaving his family considerable trust-funds or large sums of money, he plans to leave enough to help them begin their own journey. What to do with the remainder of your fortune? Spend it! You’ve earned the right to use your legacy any way you deem fit. Whether that’s enjoying your personal life to the fullest, or donating your fortune to organizations and foundations that resonate with you, etc.
Remember, this is your legacy – discover what you truly want to do. Whether that’s distributing your wealth among family members, setting up trusts for your children, donating to charities, and/or spending on yourself. The options are endless once you consider the many paths that you’re able to wander down, and remember, you can always change your path. Fortunately, you’ve put yourself in the best possible place by allowing yourself the opportunity to explore the different avenues of asset allocation. Relish this fantastic experience and remain confident that you’re making the best decision for yourself!