Legacy planning is a holistic and comprehensive form of estate planning. When you take the right steps, you can cast a long shadow even after you are gone. In this post we will provide some food for thought.
When you plan your legacy, you facilitate future asset transfers to your loved ones. There are various different ways to go about it.
If you are exposed to the federal estate tax, your financial legacy could be severely impacted. The maximum rate of the tax is 40 percent.
The amount of the federal estate tax credit or exclusion is $5.34 million in 2014. This is the amount that you can transfer tax-free. If the value of your estate exceeds this figure, you must take steps to gain estate tax efficiency when you are crafting a legacy plan.
A well constructed legacy plan will include matters of the heart. Ethical wills have been used for centuries to leave behind moral and spiritual values.
Your influence will no longer be there in the flesh, but you can pass along rules to live by if you take the time to create an ethical will.
The family heirlooms that you have in your possession may or may not have a great deal of monetary value. However, they tell a story of your family history, and many memories are embedded within these objects.
When you are creating your legacy plan, you can make sure that your loved ones receive your family heirlooms so that they can be preserved for future generations.
Charitable giving is another thing to take into consideration when you are putting your legacy plan together. There are various different ways that you can give something back.
You may want to give direct contributions to charitable organizations, or local groups that are doing positive grassroots work within the community.
Many people who are interested in charitable giving will create private foundations. We are all aware foundations that are named after very wealthy families, but in reality, most of the foundations in the United States are operating with less than $1 million.
Charitable trusts can also be utilized to accomplish your philanthropic goals. In addition to the personal reward that you receive through your generosity, there can also be tax benefits realized when you create a charitable trust.
Free Report on Legacy Planning
In this post we have provided a few things to think about. If you would like to obtain some in-depth information about legacy planning, we have a fantastic resource that is available to you.
Our firm has prepared a series of special reports, and one of the reports looks at legacy planning. To obtain your copy of the report, which is being offered free of charge, simply contact our office.
Latest posts by Timothy P. Murphy (see all)
- How Can I Limit My Estate’s Exposure to Estate Taxes? - November 20, 2019
- The Questions of Estate Planning, Part 4: Where - November 18, 2019
- The Questions of Estate Planning, Part 3: When - November 16, 2019