Let's examine the distinctions between estate planning and legacy planning so that you, your family, and your legal counsel may decide which may be more appropriate for your circumstances.

The planning is...

Estate planning is the process of deciding how your possessions will be distributed after your death. It includes drafting a will and can involve creating trust funds for kids or grandkids.

A living will and a durable power of attorney are two examples of legal medical papers that may be included in estate planning.

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A Legacy Plan Is...

Numerous other aspects are also taken into consideration during legacy planning. These may consist of:

• Deciding on future donations to charities and establishing foundations
• Keeping the family's history
• Planning for business succession

Legacy Planning Represents More Than Just Your Assets

While legacy planning considers not just your assets but also how future generations may do business and how they will be viewed, estate planning assures that your assets will be shared according to your wishes. In other words, it involves leaving a lasting legacy for future generations.

Choosing the legacy you wish to leave is a crucial aspect of legacy planning. To define your unique goal and values, consult with trusted family members, close friends, and even business associates.

What core elements of your principles do you wish to leave behind when you're gone? What is the most effective way to teach future generations these values?

What you need to know is this:

Contributions to charities:

Creating a foundation in your name or making philanthropic donations helps ensure that future generations will remember you favorably. It can also guarantee that your wealth supports the issues you care about.

There are several ways to guarantee that charity donations will continue after your passing. Choosing the best strategies while minimizing tax obligations allows more of your money to support the causes you care about.

Family history preservation is a crucial component of legacy planning, whether it be through written or spoken records. You don't want to pass away with all of your family's tales. Make sure you have a record of important events, beliefs, values, and information. And keep them in locations where your loved ones can get to.

Physical items:

Your possessions are part of the history of your family. First-edition books, works of art and other antiques, antique furniture, and real estate may fall under this category. Legacy planning may ensure that assets and collections will stay in the family.

Enterprise succession:

Finally, a company succession plan is frequently a part of legacy planning. When you are unable to continue running your business, another family member may not necessarily be the ideal choice to take it over.

Your replacement can be a key employee or another person with experience working for the company who knows how to keep it running well.

As part of legacy planning, creating a succession plan in advance might assist in avoiding controversy once the business owner dies away.

How different are estate planning and legacy planning?

The most fundamental preparations for someone's death are found in estate planning. A more involved approach called legacy planning addresses issues including asset distribution, charitable giving, family history, and a company continuity plan.

A plan that will guarantee that your desires are carried out after your death may be put together with the assistance of expert experts. They can help you decide what degree of planning you need.

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