It is estimated that only four in 10 Americans have been involved in legacy planning that includes a will, an estate plan, or any form of planning for when they are gone. But 81 percent of those older than 72 do have legacy planning in place.
That's because most Americans younger than that don't think they need it just yet, but you do. Here's everything you need to know about legacy planning and why it's important now.
Legacy planning is exactly what it sounds like, a plan for your money and assets for your family or others after you pass on. It's not just about money though, it's also about establishing a plan that dictates what you want your legacy to be after you pass on.
Legacy planning includes wills and estate plans, but you can also leave other legacies behind. You may want to plan for your name to be on an annual scholarship at a local school or have some money donated annually in your name somewhere.
It's not just about planning your money distribution. It's about planning for the message of the values you want to leave behind as your legacy.
Learn more about how to involve your children in retirement planning.
Legacy planning is important because it means you are proactive in ensuring your own wishes are respected. We all want to know what message we are leaving behind when we pass on.
Initiating legacy planning ensures that you take control of leaving the right message behind.
Legacy planning is the foundation of your retirement plan.
You don't have to be 65 to start thinking about it. In fact, the earlier you start thinking about it, the better.
You don't have to carve it in stone if you are young. Start it now, get that cornerstone of your retirement in place, and head into your future a little less concerned.
With legacy planning, you'll protect your assets early, and ensure your money is distributed where you want it to go.
In legacy planning, there are a number of different documents involved. You won't use them all, but each has its own importance.
You just need the ones that are right for your own personal situation.
That includes wills, real estate paperwork, revocable living trusts, power of attorney, advanced medical directives, and more.
Those are just the basics, and the ones most Americans turn to.
Life insurance policies are also a big part of your legacy planning. You may also consider investing in long-term care insurance, in the event, you may need it at any point after you retire.
You want your wishes respected after you pass on, and there's only one way to do that. That is legacy planning.
From life insurance to long-term care insurance, real estate deeds and wills, it can all feel overwhelming. But it needs to be done, no matter what age you are, as Liberty Claim estimates that cancer and cardiovascular conditions are the most common cause of claims in the 35 to 44 age group.
Start legacy planning today, no matter how old you are. Be clear in every step, to ensure your wishes are respected.
If you don't be proactive now, you can't expect anyone to do so for you if they don't know what you want. Legacy planning is about taking the initiative to have those awkward conversations that will ensure your wishes are respected.
Learn more about how to involve your family and your people with these 5 estate planning tips for having difficult conversations.