Chartered Financial Planners

Everything You Need to Know About Legacy Planning

Posted By on February 17th, 2021 in Blog, Financial Advisor

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Legacy planning is a financial strategy that involves planning and organising affairs in order to best bequeath assets to a loved one, or next of kin, after death. This planning most often involved a financial advisor.

Why do You Need to Consider Legacy Planning?

Although it is not the most pleasant of topics, it is important to consider legacy planning. If you don’t have a plan in place for your estate, its management might go against your wishes once you pass away and the estate is passed on. Legacy planning is especially important for those with small businesses, and other assets that require ongoing maintenance.

How Can a Financial Advisor Help?

Just like writing a will, it is important to start planning your legacy early, so that when the time comes your affairs are in order. A financial advisor can provide advice on how to best prepare your legacy and assist with any questions you might have.

The financial advisor will guide you toward reaching a level of financial security that both provides you with a comfortable life, but also allows you to leave some wealth behind to your loved ones. It is important to remember you cannot leave behind a legacy if you are not financially secure enough to build a legacy in the first place.

After they have helped you get your affairs in order, a financial advisor will help you plan how your affairs are managed after you pass on, ensuring that they continue to prosper. Often, legacy planning will involve a meeting with your next of kin, so that there are no surprises and that they understand any preferences you have over how your estate should be managed. It can be useful to have this meeting with a financial advisor present, as it means all the information will be in writing.

A financial advisor can also assist with any taxes that might affect your estate. This is a very important part of legacy planning, as many people don’t realise how high the taxes on their estates can be. A financial advisor can help you plan all potential tax scenarios, and may be able to suggest ways you can reduce how much of your estate is lost to tax.

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