A Checklist of Legacy and Estate Planning Topics for Your Family
Did you know that 70% of high-net-worth families lose much of their wealth by the second generation? That number grows to 90% by the end of the third generation, as noted in an article by Money.
Families can take steps toward securing their financial futures by working with their advisors to organize transparent conversations about legacy and estate planning. Almost all advisors (82%) say transparency into family finances is of critical importance to raising children who understand the value of money, according to Key Private Bank’s Advisor Poll focusing on the next generation. Yet, nearly half of advisors (44%) do not see their clients having open and consistent dialogues about family finances.
Not sure what legacy and estate planning topics are relevant to you? Here’s a checklist to start.
- An estate plan addresses assets, such as property, family heirlooms, and money.
- A legacy plan addresses non-financial capital, such as family history, traditions, values, and philanthropic goals.
- What would you like to pass down to your children and grandchildren?
- What are your family’s short-term, medium-term, and long-term goals?
- Are your finances set up to meet your family’s goals?
- Are your children facing unique circumstances, such as multiple marriages or disabilities, that would impact the family’s future?
- Are your heirs prepared to be good stewards of their inheritance?
- Bank account and retirement plan information
- Debt and tax information
- Financial Power of Attorney
- Healthcare Power of Attorney
- Living will
- Long-term Care Insurance
- Who will take over the business, and how will it be operated?
- What are the ownership splits with your partner(s)?
- What is the exit strategy?
- Email and social media accounts
- Online memberships and credit card purchases
- Online banking accounts
- Digital intellectual property, such as writings or photography