Written by Amber Billeter, CFP®
What does legacy mean to you? It could mean anything from a hospital wing to teaching a loved one something that will be passed on to future generations. Legacy can be purposeful, or it can just be the result of a life well-lived. Evaluating what legacy means to you and how you plan to preserve it is an important practice to ensure your long-term goals line up with your values.
Personally, I have two very different examples of legacy in my life. The first example comes from my great-grandmother, who lived to 102 and had a deep passion for her local children’s hospital. She valued spending time volunteering at the hospital and instilled this same value in her children. They continued her legacy by encouraging their own children to support the children’s hospital. When my great-grandmother passed away, she left the hospital a monetary gift. This gift was fully supported by her family due to the lifelong emphasis she placed on the importance of supporting that organization.
My second example comes from my grandparents on the other side of my family. They grew up in the Depression era and were each part of large farming families in a small rural area in Oregon. They both had discipline, a strong work ethic, and a waste-not-want-not attitude. They taught us to make the most of what we earned, to wash our cars weekly and do it properly, and to grow a garden and can the produce. If you have too much, share with those around you. Their legacy was to reuse, not waste, and support your family members.
When you think about your own legacy, there are decisions you can make to control the legacy you leave behind and there are things you can only leave behind by setting an example for those around you. Thinking about what happens when you pass on is not always pleasant but making sure that your long-term goals and values are passed on to future generations can provide reassurance down the road.
Things to consider with your legacy:
- Financially, do you have an estate plan in place, and are your assets properly titled to reflect that? Your advisor and estate planning attorney can help you ensure this is taken care of.
- Have you had a conversation with your successor, trustee, or executor to ensure they are comfortable with the role and will have proper access to the items they need? There are multiple resources we can provide to help you compile the information you need to pass on to them.
- What values do you want to pass on to those around you while you are living? What things are important to you? If volunteering is your passion, including a loved one while you volunteer can be so rewarding. You could also share a special camping site, hike or activity so that it can be appreciated down the road.
- Share the legacy of sound money management. One belief that has been passed down to many people is they should “not talk about money.” Although you do not need to detail your salary or balances, speaking about sound financial management and teaching the next generation to manage money well is crucial. Learning to save, invest, budget, and develop a philanthropic strategy will benefit children throughout their lives.
- Review your estate plan and values on a periodic basis to ensure things still align with your values. Some things change over the years and making sure that your estate plan evolves with those changes is important.
Legacy is more than just a will and monetary assets. Pass on a legacy of knowledge and actions. Talk to the next generation about how to manage money, and if those conversations are difficult or you need support, your advisors are here to help with ideas. Although we always think of our legacy being far down the road, do what you can now to cement those ideas and carry on your values.
While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Amber Billeter and not necessarily those of Raymond James.
