When families gather to share meals, exchange gifts, and build memories, it can also be an opportune timefor deeper conversations about legacies and the family's future. Here's how to approach these important discussions so the family’s wealth can benefit future generations. Before diving in, review our accompanying Legacy Planning Checklist.
The importance of legacy planning
It's essential to understand why legacy planning is important. Legacy planning goes beyond a will and estate planning. This planning involves deeper communication and understanding within the family, so that one's life experiences, values, and wisdom are passed on to younger generations.Legacy planning helps the family to:
Understand and appreciate their roots and heritage
Foster unity and harmony through shared values and principles
Provide directions for the distribution of assets
Reduce potential disputes among family members after the passing of loved ones
Legacy planning is a gift to both current and future generations, as it provides an opportunity to record and preserve the family’s history, principles, and values.
Bringing up the legacy conversation
Introducing the topic of legacy planning to family members might seem daunting, but it doesn't have to be. When families gather for holidays, the relaxed, festive atmosphere provides an ideal moment for these conversations. Here are some tips for bringing up the conversation:
Start by sharing stories– Sharing family stories can naturally lead into a legacy conversation.
Involve everyone – Make sure everyone feels included. This isn't solely about the eldest in the family; everyone has a role to play and a perspective to share.
Be patient and empathetic– Understand that not everyone might be ready to dive deep into this conversation immediately.
Involving younger generations in legacy conversations
Keeping the younger generation engaged might be challenging, but it's crucial to the success of legacy planning. Here's how to do it.
Use technology– Engage younger family members with tools they are comfortable using, such as family blogs, digital photo albums, or social media groups. This creates a safe space where they can contribute and learn from elder family members.
Make it relevant– Relating past experiences and values to present circumstances can help younger generations understand their relevance.
Create engaging activities– Involve them in creating a family tree, recording family stories, or gathering family recipes. This can be both fun and educational.
Starting legacy conversations
Legacy conversations start with casualconversations with loved ones.
Share values– Talk about the family’s values so younger generations have a framework for understanding and carrying on the family legacy.
Discuss experiences– The older generation canshare triumphs, failures, and lessons learned. This can provide younger generations with valuable life lessons.
Talk about the future– Involve everyone in discussing what they envision for the family’s future. This creates an environment of shared responsibility towards maintaining and building upon family legacy.
Remember, family legacy conversations must encourage everyone to share their thoughts and ideas. Keep the atmosphere relaxed and open, so everyone feels heard and respected.
How financial professionals help
Financial professionals are key in framing the legacy conversation. They assist in structuring the dialogue in an organized way, act as neutral third parties, provideprofessional guidance, and work towards all key points being covered. This includes discussing financial assets, liabilities, succession plans, and philanthropic activities.
Additionally, they help implement the legacy plan. They assist in executing the decisions made during these conversations.
This holiday season, take a moment to foster a legacy conversation that could shape your family's future for generations to come. Access our legacy and family wealth checklist to get started.
This article was prepared by Fresh Finance.
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Sources:
https://www.investopedia.com/talk-to-heirs-about-wealth-11714000
This material has been provided for general informational purposes only and is not intended to be a substitute for specific individualized tax or legal advice. Neither LPL Financial, nor its registered representatives, offer tax or legal advice. Always consult a qualified tax advisor for information as to how taxes may affect your particular situation.