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Thats where financial legacy planning comes in.
Its a term often used interchangeably with estate planning, but there are key differences.
Financial legacy planning focuses on ones core financial values and passing them down to heirs.
Its also not just for the ultra-wealthy, or something you should only consider later in life.
Both are widespread misconceptions.
Anyone can benefit from both financial legacy and estate planning, Wybar said.
If youre considering financial legacy planning, here are a fewsteps to consider.
Reflect on Your Core Values
Begin by defining the things that matter most to you.
A mission statement can help at this stage.
Write down your vision for the legacy you want to leave behind.
These conversations can foster alignment, manage expectations and prepare heirs to handle their inheritance responsibly.
It might involve establishing charitable foundations or donor-advised funds to create a lasting philanthropic legacy that reflects your values.
Explore ways to give back to the community in a way that aligns with your values.
These irrevocable trusts allow you to make charitable donations and draw annual income.
Document Those Life Lessons
Documentation is an important part of financial legacy planning.
Consider creating an ethical will or recording stories, advice and personal experiences.
Final Thoughts
Financial legacy planning offers numerous benefits beyond financial security for your loved ones.
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