When people set financial goals, things like retirement and saving for a house are often considered to be at the top of the list. After all, there’s a lot of different things to do with your money and, for most people, there is not an endless supply of it. 
In some cases, however, people are actually thinking much longer-term when they are setting their financial priorities. In fact, for a surprising number of Americans, one of the single most important financial goals isn’t based on their own needs at all. Instead, it’s focused on providing for and protecting loved ones after they are gone. For those Americans, legacy planning has a prime place on their to-do list.
Here’s what you need to know about this key financial goal, as well as some tips on how to achieve it.
Leaving a legacy is a top priority for many Americans
According to a survey performed by Northwestern Mutual, legacy planning is actually a very important financial priority for many people across the United States. The survey revealed that 68% of people, or around 2/3 of people who indicate they are planning to leave an inheritance believe that doing so is either their “single most important financial goal,” or is a “very important” goal.
While you might assume it is mostly older people who are thinking about what their legacy will be and making it a priority, that’s actually not true at all. A total of 75% of members of Gen Z and 81% of millennials have described leaving a legacy as their most important financial goal or as a very important goal for them. By comparison, only 65% of members of Gen X and just 46% of Baby Boomers describe providing a legacy for loved ones as a key priority for their finances.
Young people have faced many financial challenges in recent years, often having to work very hard to do things like buy a house or to pay off student loans they acquired to earn a degree. Their own struggles could be one of the key factors influencing them when they decide that taking care of their children and leaving a legacy is so important to them. They may want their kids and grandkids to have an easier time because they have a financial cushion.
How can you accomplish this key financial goal?
If leaving behind a legacy is one of your most important financial goals, there are a number of tools and techniques that you can use in order to make that happen. You should consider taking steps to make your legacy plan early as doing so can ensure you are prepared and ready to provide for your loved ones even if something unexpected happens.
One of the first things that you should aim to do when legacy planning is important to you is to take steps to try to protect the assets that you are acquiring. You don’t want to work hard to build an inheritance to leave for your family only to lose it because you end up having to go into a nursing home or need long-term care — both of which can be very expensive and not covered by insurance. Working with an attorney to make a Medicaid plan can ensure that this doesn’t happen to you.
You can also take steps to ensure that your assets are safe and properly managed if something happens that leaves you incapacitated. You don’t want the wrong person put in charge, which could lead to mismanagement of your property and leave less for your loved ones. If you use tools like a living trust or create a durable power of attorney, you can ensure that the assets you want to leave for your family are taken care of appropriately even when you cannot do it personally.
Facilitating the transfer of assets outside of the probate process can be a helpful step to take to secure your legacy as well. The probate process can be time-consuming and it can sometimes be expensive. If you have a very large estate, then you could also find the estate owes taxes to the IRS, which can eat away at the amount of money you are able to leave behind for your family as well. Massachusetts is also one of just 12 states that has an estate tax so you may be able to work with your attorney to try to avoid this tax or minimize the amount of money that your estate has to pay after you are gone.
Passing property in other ways, such as through the trust administration process, could allow your heirs to receive their inheritance more privately since, unlike probate proceedings, trust administration proceedings are not public record. They could get their money and assets more quickly as well, which can also help to protect the assets that they are inheriting.
These are just a few of the many different ways that you can achieve your goal of leaving a legacy for loved ones if you are one of the many Americans who finds this important to you. There may also be other personalized steps that you need to take based on your situation, such as making a business succession plan if you have started a business and you want your family to continue operating it after you are gone.
Work with an estate planning attorney to make your dream of leaving a legacy come true
There is good reason to prioritize providing for loved ones after you are gone. You owe it to yourself, and to future generations, to get the help that you need to make this happen if this is something that you care about. The Law Offices of James A. Miller, P.C. is here to provide the support that you need throughout the estate planning process. We can turn your dreams of building a legacy into a reality.
Give us a call today at (508) 799-8885 or contact us online to speak with a Worcester, MA estate planning lawyer who can help you.