How You Can leave a Legacy for your LCS?

1. Start Legacy Planning!

Legacy planning is the act of preparing how you will bequeath your property and assets to your loved ones after your death. It’s more or less a synonym of estate planning, but the term has gained popularity among financial advisors in recent years. This is perhaps because “estate planning” has come to evoke death, or perhaps because “estate” is associated with the wealthy.

As with estate planning, the typical legacy planning strategy centers around planning the transfer of wealth and assets from you to your heirs. Depending on the size of your estate, this plan may be very simple or very complex.

Some also ascribe more abstract elements to legacy planning. This might include discussing the values you’d like to impart on your heirs, or crafting a family narrative that encompasses more than simply real estate or cash assets. It might also place a heavy emphasis on charitable giving.

Ultimately, though, there are no hard and fast requirements that clearly distinguish the process as legacy planning rather than estate planning. The process entails anything and everything that ensures you’re happy with the legacy you leave behind.

2.Why Is it Important?

Whether you call it estate planning or legacy planning, transferring wealth from estate to beneficiary is often far from simple. Just dealing with the probate process alone can take months, sometimes years.

Many legacy or estate plans will therefore rely on trusts to avoid the probate process altogether. You can fill more specific needs in your plan using different types of trusts.

Whatever strategy you employ, it’s smart to work with a financial professional. For a typical estate plan, it’s smart to work with an estate planning attorney who can help you prepare documents such as wills and trusts. As legacy planning is purportedly a more holistic process, it may be smart to also find a financial advisor. An advisor can help you arrange your investments and build a financial plan that helps ensure a strong financial legacy for your children and grandchildren.

You’ll also want to ensure that when you pass away, you’re maximizing what you can leave for their family. Usually, this means minimizing what goes to taxes. A sound legacy planning strategy, built with the help of a financial professional, can ensure that you accomplish this goal.

3. How to Start Legacy Planning?

Broadly speaking, the first step in any legacy planning process is to gather information. You’ll want to have a list of all your assets and where they’re kept. That can include everything from investment accounts to real estate to insurance policies.

You’ll also want to think through your answers to several questions. Whom do you want to leave your property and other assets to? Are you interested in donating anything to charity? Do you have any specific preferences regarding your medical care that you want to record in an advance directive? Having a rough idea of these things at the start of the process will help to streamline things.

Next, you will most likely need to seek help from an expert. Everyone wants different things out of their life and their legacy, so no two legacy plans will be exactly the same. Everyone has a unique financial situation. Further, you’re subject to distinct laws and tax rules depending on where you live, if you’re married or have children and how much wealth you have. Be sure you understand the local, state and federal laws pertaining to probate, taxation and more.

To find specific expertise and advice on what your first steps should be, your best bet is to talk things over with a financial advisor or an attorney who’s familiar with the laws of your state.

3 GENERATION INSURANCE PLAN

A ”3G Insurance Plan” is a type of insurance plan designed to provide wealth for 3 generations. Such plans help to provide a stream of income for the owner of the plan and subsequently for his beneficiary. The capital is usually preserved and passed down to the 3rdGeneration. This may be one of the more cost effective methods adopted by Parents, Benefactors, Guardians or Caregivers who wish to benefit their dependent or ward for a lifetime.

How does a “3G Insurance Plan” work?

> Mr Ang aged 40 plans to set aside $300,000 cash for his daughter aged 8 and his future grand children as part of his legacy planning.

> Mr Ang takes up an Insurance Plan with his daughter as the Life Insured and this plan starts to pay an income stream from the end of the 5th year from the commencement of the plan. He can choose to re-deposit the income back into the plan or to spend it on himself.

> Mr Ang then decides to transfer the ownership of the plan to his daughter when she turns 35 years old. This will allow her to continue receiving the income stream provided by the plan.

His daughter not only inherits the plan which provides her with an income stream, it also provides a coverage amount of $300,000 (the original capital) plus additional bonuses. Upon her demise, the coverage amount will be paid to her beneficiaries.

Keeping It Simple for Everyone.

“3G Insurance plans” are not usually recommended as the only type of legacy assets but often, they have very good reasons to be part of a well thought out legacy plan.  This is because of its ability to convert the legacy asset into the following real life effects for both you and your beneficiary.

1. Money in the form of Income

By giving the money in the form of an Insurance plan, the effect is that the beneficiary will be receiving a stream of income for life instead of a large sum of money immediately.  To a vulnerable beneficiary, a large sum of money is a big inheritance while a lifetime of monthly income is an invaluable legacy.

2. Regular Income without Regular Management

This is perhaps the most unique feature and benefit of an Insurance plan.  It provides a stream of income, typically for a lifetime, for the beneficiary.  As the insurance company is managing the regularity of the income pay out, the beneficiary does not have to be actively or competently involved.  For a vulnerable beneficiary, this is usually the most important consideration – a fuss free approach.

3. Continue your Legacy

“3G Insurance plan” comes with death benefit which is generally equivalent to the initial amount of premium invested.  This means that not only will the beneficiary be able to benefit in the form of lifetime income, the initial sum of premium will be preserved to the generation after in the form of a low risk guaranteed life insurance pay out.

SUMMARY

You’ve worked hard to build what you have. So, it’s only natural that you want to establish and nurture a legacy that will last for years or even decades after you’ve gone. Accomplishing the estate planning basics like a last will and advance directive are of vital importance. But, it’s also beneficial to think about the process more holistically.

Creating and maintaining a legacy plan gives you your best chance at that lasting legacy, whether that involves creating a trust, starting a foundation, crafting your last will and testament or all of the above. By creating your legacy plan, you are ensuring that you can continue to support the people you love even after you’ve died.