When one mentions legacy planning, the image that comes to mind often involves the elaborate trusts and estate plans associated with the wealthy. In actuality, a legacy plan can be as simple as leaving a will. Due to its finality, it is rarely brought up by all but the most concerned adults (less so by young adults who have even younger heirs), but it remains an important aspect of financial planning. Tackling this issue as soon as possible would smooth out potential problems in the process and ensure a fitting financial legacy for heirs.
At its broadest sense, a legacy plan is a means of bequeathing of the asset of one’s estate upon death, according to the wishes laid out by the deceased person when he or she was still alive. Legacy plans often encompass strategies to maximize the value of the assets received by heirs. They can also include an elaborate setup of funds meant to maximize financial returns while minimizing tax liabilities.
Life insurance is among the assets included in many estate plans. Although far from comprehensive, life insurance does provide a fundamental base with which to start planning for the financial future of one’s heirs, especially in the event of an untimely death. Indeed, without the degree of financial security provided by a life insurance policy, a person wouldn’t have much of a financial legacy to speak of.
Selecting the right insurance policies to include in one’s trust assets plays a key role in preserving and building wealth for the trust throughout a lifetime.
Andrew Corbman heads ASC Financial, which helps clients broaden their life insurance options to meet their legacy planning goals. Visit this website for more on his company’s retirement and legacy planning services.