Why Legacy Planning is So Important, Ep #29 

How do you want to be remembered when you’re gone? Who do you want to bless financially? What organization or individuals are important to you? Legacy planning is the missing piece in retirement plans—and can be a difficult conversation to have. But it’s a conversation that must be had and what I’m talking about in this episode of Retirement Made Easy.

You’ve worked hard for everything that you have. You didn’t get it by accident. If you spent your entire life working for everything you have, at least spend some time planning for a positive and beautiful legacy. If you don’t, it could be a nightmare for your loved ones.

You will want to hear this episode if you are interested in…

• [1:44] What do you want your legacy to be?
• [3:24] My grandparent’s personal story
• [6:13] Keep your legacy planning fair
• [9:31] A hypothetical scenario
• [11:05] “Bullet-proof” they money you leave
• [13:52] A conversation you need to have

Don’t let your legacy be a missed opportunity

My grandparents would’ve loved to pay for their six grandsons’ college educations. But they didn’t have that conversation with their financial planner and the goal was never addressed. The sad part is that they were in a great position to pay for all six educations—they just never had the conversation to put it into place.

Four of the six grandkids came out of college with high student loan debt. The other two didn’t complete a college education. That’s not to say they didn’t leave a legacy. We all learned essential core values from both of them, such as working hard and treating everyone with respect.

Legacy planning [keep it fair]

People want to be fair to each of their children. They love them all the same and want everyone to be happy. One couple I met paid $20,000 for their two oldest daughter’s weddings, but their youngest hadn’t married yet. So they wanted to make sure she received $20,000 to cover her wedding if they passed.

I had another client with 3 sons. He paid for the oldest’s college education (roughly $50,000) but the other two never attended college. He felt guilty later on in life, so he wanted to give the middle and younger sons a $50,000 lump sum check.

We had a couple with a son and a daughter who had given a small loan to their son. He was never in a position to repay it, so they forgave the loan. But to be fair, they wanted to gift their daughter the same amount.

Keep listening for a hypothetical scenario that can help you think through your own legacy planning.

“Bullet-proof” the money you leave

Many clients want the money they’re leaving to their children to be protected from liability lawsuits, creditors, etc. We call it “bullet-proofing.” You can even set up a graduated distribution of the money so they don’t get a lump sum all at once (if they’re not responsible or can’t manage the money wisely). You don’t want it squandered away, right?

How will your beneficiaries handle what you give them? How will it improve their life? Some people make wise decisions, others have made terrible decisions with the assets that they inherit.

I have a client who has a trust set up with very detailed instructions on how his two sons will receive their inheritance. It can be used to pay off their mortgages or debt that they have but have to be sent directly to the creditor. Lump sums will be paid to them upon their 35th birthday, 40th birthday, and so on.

Leave the legacy you desire

No one wants to think about a short-lived retirement. But you do want to make sure the pieces of the puzzle go where you want them to. I’ve seen the worst estate battles where families are fighting in probate court for years. So when they think of their parents, they think of the hell that they had to go through.

If you don’t do the proper planning, you end up with a legacy that’s not lived out. Financial planners can help you make smart choices now so you make a positive impact on the lives of your family and loved ones. Don’t let your legacy planning fall to the wayside.