By Joe Arnold, AIF®
Oftentimes, when we think about leaving a legacy for our children, we think about writing a will and divvying up our wealth. But leaving a legacy is about more than just money. Will your gift ensure their security for years to come, or will it be a mess of assets, liabilities, and confusing records that takes years to sort out?
If you plan to pass your wealth to your children, it’s important to make the transition as smooth as possible. When your children are walking through grief and heavy decisions, they shouldn’t have the added stress of dealing with a chaotic inheritance process. Incorporating comprehensive legacy and estate planning can make this process much smoother.
The Importance Of Estate Planning
Estate planning should be an integral part of your financial and retirement planning. Failing to have an estate plan may not have a significant impact on your own life, but it will undoubtedly affect the lives of your loved ones after you’re gone.
In the absence of an estate plan, your death will be considered intestate, which means there was no valid will in place at the time of your death. The state in which you lived will determine who inherits your property through a process called probate, which can take anywhere from 6-9 months or even several years without proper planning.
In addition to this process lasting a long time, your inheritors may face expensive fees, predatory claimants, and loss of control over what happens to your estate. Probate can cost up to 3-7% of your total estate value. (1) And because this process becomes public information, this means that greedy creditors or estranged relatives may attempt to claim portions of your wealth.
Good estate planning mitigates these risks and provides your family with a secure plan for how your wealth will be transferred. The professionals in your life, such as your estate planning attorney and financial advisor, can become trusted resources for your family to lean on during this difficult transition.
Create A Lasting Legacy
Additionally, good estate planning incorporates legacy planning, which can be even more beneficial to your inheritors. Legacy planning allows you to incorporate family or financial values into your wealth transfer. If your children aren’t as adept at money management or have made financial mistakes in the past, your legacy planning can help guide them through what to do with their new wealth.
Your legacy planning can also ensure your children use the inherited wealth to continue providing security for all members of the family, and not to pay for unnecessary luxuries. Legacy planning may help to protect your grandchildren and encourage generational wealth-building for decades to come.
Leave An Inheritance You’re Proud Of
If you haven’t yet thought about the type of inheritance you’re leaving for your children, now is the time to do so. If the last year has taught us anything, it’s that we never know what’s around the corner. As much as we dislike thinking about our mortality, the truth is that we can’t predict the future, and having a plan in place will provide some peace and comfort to our loved ones.
Instead of leaving your family with a mess, give them a lasting legacy that will enrich their lives and future generations. The Foundation Wealth Advisors team is dedicated to supporting, educating, and providing informed direction to every client. If you partner with us, we will use our knowledge and experience to help ensure your family is well taken care of so you can enjoy peace of mind knowing someone is watching out for you (and your family). Schedule a complimentary appointment by calling (440) 899-7535 or emailing me at jarnold@foundationwa.com.
About Joe
Joe Arnold is an independent financial advisor and the founder and president of Foundation Wealth Advisors, LLC, an independent firm whose advisors provide private investment management for individuals and families, as well as retirement plan consulting for small and mid-sized businesses. With 20 years of experience in the financial industry, Joe specializes in providing objective advice to individuals, as well as transparency in building and managing company 401(k) retirement plans. He is committed to putting his clients’ best interests first in all decision-making and recommendations. Based in Westlake, Ohio, he serves clients in the Cleveland, Akron, and surrounding areas, as well as throughout the country. Joe received a bachelor’s degree in business administration from Cleveland State University and is an Accredited Investment Fiduciary® (AIF®). He has been featured on national television, including CNBC and FOX Business, and quoted in various publications, including The Wall Street Journal, CNN Money, Forbes, and others. Joe lives in Rocky River, Ohio, with his wife, Allison, and their two grown children, Kevin and Keira. An avid golfer, he is a former Class A PGA of America teaching professional and NCAA Division 1 athlete. When he’s not working, he enjoys playing golf, reading, and honing his culinary skills. To learn more about Joe, connect with him on LinkedIn.
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