Legacy Planning vs. Estate Planning
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Legacy Planning vs. Estate Planning

Conventionally, the method of planning for the transferring of assets to your loved ones following your passing is called estate planning. As you draw clos this method, you may also hear other language: Legacy planning. Each of them is, in many ways similar, with many financial professionals using the term as a “re-branding” of the more conventional language. Nevertheless, many contend that legacy planning consists of a greater comprehensiveness of planning and activities.

What Is Legacy Planning?

Legacy planning is the process of preparing how you are going leave your assets and property to your loved ones following your passing. It’s practically a synonym of estate planning, but the terminology has undergone popularity with financial advisors recently. This is maybe since estate planning” has come to elicit someone’s passing, or perhaps because “estate” is associated with the rich.

Likewise to estate planning, the usual legacy planning approach focuses around planning the transfer of wealth and assets to your heirs. Subject to the size of your estate, this plan might be very straightforward or very convoluted.

Some also credit more abstract attributes to legacy planning. This may comprise of discussing the values you would like to convey to your heirs, or devising a family account that encompasses more than just real estate or money assets. It may also place a large focus on charitable giving.

At the end of the day, though, there are no strict requirements that clearly determine the process as legacy planning instead of estate planning. The process comprises of everything and anything that guarantees you are content with the legacy you’re leaving behind.

Why Is It Important?

Whether or not you designate it as estate planning or legacy planning, the transferring of wealth from estate to beneficiaries is usually far from straightforward. Just handling the probate process by itself could take months, occasionally years. A lot of legacy or estate plans are going to therefore depend on trusts to bypass the probate process completely. You could fill more particular requirements in your plan utilizing different kinds of trusts.

Whichever strategy you decide to use, it’s a wise idea to work with a financial advisor. For a conventional estate plan, it’s wise to work alongside an estate planning attorney that can assist you in preparing documents like wills and trusts. Because legacy planning is believed to be supposedly a more integrated method, it might also be wise to find a financial advisor. An advisor can assist you in arranging your investments and create a financial plan that helps guarantee a powerful financial legacy for your children and/or grandchildren.

You’ll also want to guarantee that when you perish, you ’re making the most of what you can leave for your family. Typically, this means decreasing what goes to taxes. An ideal legacy planning strategy, created with the assistance of a financial professional, can guarantee that you reach this goal.

How to Begin With Legacy Planning

Generally, the first step to any legacy planning method is to collect information. You will want to create a list of each of your assets and where they’re located. That can comprise of everything from brokerage accounts to actual real estate to insurance policies.

You will also want to go through your answers to a multitude of questions. Who are you wanting to bequeath your property and other assets to? Are you curious about donating somethings to charity? Do you have any particular preferences concerning your medical care that you want recorded in an advance directive? Having a general idea of these at the beginning of the process is going to help to simplify things.

Following that, you will probably need to find assistance from a profession. Individuals want different things from their life and their legacy, so no 2 legacy plans are going to be identical. Everyone’s financial situation is unique. Additionally, you will be subject to specific laws and tax rules dependent on where you reside, if you are married or if there children involved and how much affluence you have. Make sure you have a comprehension of the local, state and federal laws relating to probate, taxation, etc.

To locate particular knowledge and advice on what your beginning steps need to be, your best bet is to discuss things with a financial advisor or a lawyer that is familiar with the laws in your state.

You have worked hard for everything you have. Obviously, it’s only natural you wish to establish and develop a legacy that is going to last for years or even decades after you’re gone. Achieving the estate planning fundamentals such as a last will and advance directive are of critical importance. However, it’s also beneficial to think about the process more holistically.

Creating and keeping a legacy plan maintained is going to give you your best opportunity at that lasting legacy, whether that involves devising a trust, creating a foundation, creating a last will and testament or each of the above. By developing a legacy plan, you are guaranteeing that you are able to continue to support the people you love even after you have passed away.


  1. Hunter Kuffel, C. (2019, July 24). How is legacy planning different from estate planning? Retrieved March 30, 2021, from https://smartasset.com/estate-planning/legacy-planning

Arizona Family Law

Naming guardians in your will can be part of your estate plan. You may think you’re too young or don’t have enough money to justify the expense, but if you have children, you have priceless assets. There are many considerations when naming guardians for your kids. However, the process doesn’t have to be expensive or complicated.

There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.

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