Planning for your financial legacy refers to the act of preparing how your wealth and assets will be inherited and distributed to your family and loved ones after your death. While this can understandably be a difficult process for many people, it is also a necessary one to give yourself and your loved ones’ the peace of mind.
It is only natural that you want to establish and nurture a legacy that will last for years after working so hard to build what you have. Creating and maintaining a legacy plan can help you ensure that you can continue to support the people you love when you no longer can.
Why should you plan?
With a proper financial legacy plan in place, you’ll have control over who receives your assets and can prevent any arguments or uncertainties surrounding the inheritance of your assets.
Preparing a will, insurances, bank accounts and vital contact details also allows your loved ones to have access to everything they need so that your wishes can be carried out in the proper manner.
You’ll also have the ability to make special arrangements to financially support a family member with health problems or set up a trust fund for someone who might need it in the future.
In short, planning for a financial legacy aims to eliminate any uncertainties on the division of your wealth and assets, and ensures that your beneficiaries will have the finances that they need. As your assets and life situation will change over time, you’ll also want to review your plan with a financial advisor yearly or when a major life change happens. By doing so you’ll have a proper plan in place which will give you the peace of mind to enjoy life knowing that no matter what happens, your loved ones are financially secure.
Building a legacy
For a start, investing in the stock market can be a great way to do this as it has the potential to continue growing over the years.
Alternatively, a common and popular option is insurance. Setting aside atleast BND10/month on a life insurance policy can protect your family financially when you are no longer able to.
You can speak to a financial planner to find out your best options.
How do you start planning?
Here’s a step-by-step guide on how to start planning for your financial legacy.
- Gather information regarding your assets. You’ll want to have a list of every kind of asset you own and where they are kept. This includes everything from life insurance and real estate to investment accounts.
- Next, you’ll need to start thinking about to whom and where you want your assets to go. It would be beneficial to have a list of people such as your partner and children, siblings and relatives.
- Once this is done, you can then proceed to the most important step in the process which is deciding who gets what, when they are getting it and how they will receive it. Working with a financial advisor is crucial as you’ll need specific expertise and advice on what works best for you based on your objectives.
