by Lisa A.K. Kirchenbauer, CFP®, CPWA®, RLP®, CeFT®, Founding Partner and Senior Advisor at Omega Wealth Management
Often overlooked, most people focus on the technical documents of legacy planning: will, trust, powers of attorney, etc.… What those documents don’t provide is the “why” or context of wealth and values which can be critical for heirs to have. Over the years, having worked with a number of beneficiaries, without any context or direction, heirs can often go one of two ways...
- Unable to take action and engage in the wealth received. Whether it be updating the investment strategy for their benefit and circumstances or getting comfortable spending the wealth.
- Spending through the wealth because the beneficiary is uncomfortable with the wealth or how it was created. It could take the form of giving away randomly or spending it “recklessly”.
When we buy an appliance, we receive operating instructions and yet when we give wealth, we often pass it on with absolutely no “instructions”. Legacy Planning can involve creating a simple document that provides context and guidance. A Legacy Plan can help pass on the values of the family, provide ideas on how the heirs can utilize the money in their lives. By answering some of these questions, putting them into writing, and sharing them with your heirs, it can have a very positive and powerful impact on the family as a whole. Some questions to consider and answer in the document:
- How was the family wealth created?
- What are the most important family values that you hold?
- What did you use your money for?
- What might the next generation/heirs deploy the money for?
- What is your greatest hope for the next generation(s)?
Charitable giving/giving back is often an important value and potential area of empowerment and education for the family and the next generation. Memorializing this value can help guide heirs as they live into the wealth they receive.
The team at the Community Foundation looks forward to working with you and your clients to establish (or update) bequests to fulfill your clients’ charitable legacies. Give us a call! 703-879-7640
Founding Partner and Senior Advisor at Omega Wealth Management
The Community Foundation team is happy to help you structure charitable giving tools and plans to achieve your clients’ philanthropic goals—whether through beneficiary designations or any other type of charitable giving vehicle. This email address is being protected from spambots. You need JavaScript enabled to view it.!
The information contained in this article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
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