Creating a Legacy plan goes beyond traditional retirement planning. Looking at income, debt, taxes, investments, estate planning, and legacy strategies to set and achieve long-term financial goals are all part of the legacy plan. Discussing values and goals for legacy planning can actually improve communication with loved ones and build stronger relationships.

1. Building a sense of purpose and direction by better understanding your values and goals early on

Creating a legacy plan is an important step in ensuring that you build a sense of purpose and direction for your life. Understanding your values and goals early on lays the groundwork for making them attainable in the future. A legacy plan helps clarify where you want to be in five, ten or even twenty years — career-wise, location-wise, and more importantly, how close you are getting to living a life that aligns with what’s important to you. Furthermore, legacy planning gives you an opportunity to reflect on your experiences thus far and determine what additional steps are needed in order to live the legacy-oriented life that you truly desire.

2. Creating a solid foundation for financial planning that can help individuals set and achieve long-term financial goals

A legacy plan goes beyond traditional retirement planning and helps individuals set goals and develop plans that are tailored to their individual situations. Taking a big-picture approach, legacy planning involves looking at factors like income, debt, taxes, investments, estate planning and legacy strategies to ensure that wealth can effectively transition between generations, while meeting the needs and interests of all stakeholders. With this kind of comprehensive approach, legacy planners help individuals create an actionable roadmap towards achieving long-term financial goals — including setting aside money to pay education costs, paying off debt and leaving a legacy behind.

3. Developing a sense of responsibility for one’s own legacy and recognizing the importance of early planning

Considering questions such as what assets you’d like to gift, who should manage them, and when they should be distributed are all important points when creating your legacy plan. By acknowledging that you have some autonomy over how these aspects will play out, you can have the peace of mind knowing that there’s security in place for yourself, loved ones, and any causes or charities close to your heart. With early legacy planning, it’s possible to approach ageing and legacy issues with awareness and confidence.

4. Identifying and addressing potential issues that may arise during the planning process, such as family conflicts or legal challenges

It is important to include family members in the decision making, as it is difficult to make progress without the support of everyone involved. However, there are potential issues that may arise during this process such as family conflicts or legal challenges, which can be an unexpected hurdle. Therefore, when creating a legacy plan it is critical to identify and address any potential conflicts or challenges early on to prevent any detrimental outcomes down the line. 

5. Enhancing communication with loved ones and building stronger relationships by openly discussing values and goals for the future

Creating a legacy plan provides an opportunity to come together and reflect on what the family is collectively valued and share aspirations for the future. It creates an open space to discuss expectations, make important decisions, and have meaningful conversations about legacy-related topics that can impact generations to come. The legacy plan also sets forth actionable steps of how one will go about making sure values are passed on in years to come. By openly discussing values and goals for the future through legacy planning, individuals can create stronger relationships with their families that can last long beyond their own lifetimes.

Want to incorporate philanthropy and charitable giving into your legacy plan? Click here to read our blog about the importance of philanthropy and charitable giving! Also, check out this in-depth guide on how to create a legacy plan. Click here.