The urgency of daily matters often leads to a situation when such fundamental tasks as legacy planning fade into the background. And it’s easy to understand. In addition to the fact that the very thought of the imminent departure of a person can produce a psychologically stressful situation, a lot of work must be done to plan the inheritance effectively. In addition to making inventory for all property, it is important to find out all the nuances of legislation, calculate cost-effective ways of transferring inheritance, and discuss with potential heirs their role in managing business, family affairs, etc.
To save themselves from this troublesome work, many wealthy families use the services of legacy planning. Professionals know both legal norms and psychologically effective approaches to regulating such delicate issues. They easily cope with tasks that can become a real challenge or even barrier for the person or their family. Certuity company provides comprehensive and competent legacy estate planning services that range from planning the transfer of different types of assets to preparing the next generation to take on new roles in managing family affairs.
Why Is Legacy Planning Advisable?
Do you need to worry in advance about who will inherit your property, or can this issue be left to chance? Of course, if there are people who are dear to you, think about the inheritance in advance. In the event of a person’s death in the absence of a will, the inheritance is divided between different applicants in accordance with applicable law. It may turn out that a significant part of the property will be passed to the family member who won’t be able to manage it effectively and just ruin the family business, estate, valuable collections, etc.
A good option to leave a financial legacy to your descendants is to purchase liquid real estate. It is best to buy real estate in developing states and cities. Some of the most promising cities for purchasing real estate are the cities of Austin and San Antonio in Texas. In order to purchase the right property in San Antonio, it is recommended to use the services of Real Estate Agents from the RSA company.
Tasks Performed During Legacy Planning
Thinking carefully about the disposition of property in the event of a person’s death and appointing heirs and beneficiaries is a multi-step process.
| Stage | Tasks to Solve | Main Challenges |
| Goal-setting | Identifying financial and non-financial goals and priorities; Determining values and considering how they can be reinforced by allocating existing assets. | Harmonization of personal and family values and priorities. |
| Inventory | Making a list of all bequeathed property; Analysis of existing property, its valuation. | Determining the exact value of each item; Payment of debts to neutralize or reduce liabilities. |
| Designating heirs | Development of a plan for the distribution of assets between heirs and beneficiaries. | Certain assets that have a high value at the time of inventory may depreciate over time. As a result, the distribution of assets between heirs will need rebalancing. |
| Strategic analysis | Finding out all the legal nuances to choose the best way to transfer an inheritance with the minimum taxes. | The most suitable tax-saving strategies may become obsolete over time in case of changes in legislation. |
| Creation of a will/trust | Legal formalization of the will. | The need to update documents if the number of beneficiaries decreases or increases due to such factors as the death of relatives, birth, marriage, divorce, etc. |
| Notification of one’s will | Conversations with heirs and preparing them for future tasks. | Possible conflicts between heirs; The unwillingness of a designated person to accept certain responsibilities, such as running a business, estate management, etc.;The young age of some heirs for the performance of certain duties and the need to appoint a guardian. |
Philanthropic Projects to Enhance Community Well-Being
An important component of legacy planning is philanthropic projects. They express gratitude to a particular community, social group, or society as a whole. Philanthropy performs a humanitarian mission and helps to strengthen the reputation of the family and inscribe the name of a departed person into the history of the region or country. Philanthropic projects can take a wide variety of forms:
- Transfer of a personal collection of paintings to an art gallery;
- Donating a personal library to the university where the person studied;
- Allocation of one of the estates to the ownership of the local community for public needs, etc.
For example, researchers estimate that about 34% of all forest land in the United States is privately owned. The communities are interested in ensuring that these lands are not divided among the heirs, but are transferred to communal ownership. Such a gift would be a wonderful memory of the departing person.
Proactive Approach to Legacy Planning with Certuity
Legacy planning services are part of the wealth management comprehensive approach. Certuity has a nearly 20-year history of successfully providing family office services, investment consulting, and legacy planning. Thanks to its outstanding services, the company has gained national popularity among high and ultra-high net-worth families. Legacy planning is especially required by wealthy families because a well-thought-out legacy strategy leads to positive results in many respects:
- The smooth running of existing business or investment projects;
- Effective implementation of philanthropic projects;
- Significant tax savings on inheritance;
- Respect and understanding among the heirs.
Often, when drawing up a legacy plan, the company’s clients think about increasing their wealth to provide their loved ones with maximum capital after their departure. For these purposes, Certuity company offers the Outsourced Chief Investment Officer (OCIO) https://certuity.com/ocio/ service, which allows the most efficient deployment of investments for profit growth.
The proactive approach that the company adheres to encourages a person to have positive thoughts and constructive actions, even in the face of such a challenge as a possible death. Concentrating on caring for loved ones and desiring to secure their future, many people get a new impetus for life, new perspectives, and the intention to realize them. By planning their legacy, clients get ascertained that all their wealth would be distributed among the heirs most efficiently. This brings harmony, peace, and confidence both to a person who is planning a legacy and the whole family.