Legacy Planning with Your Family – The Key to a Legacy That Lasts

By Lisa G. McCurdy, Esq.

Financial success does not serve your family if there is no written plan.

Without a guide for the next generation --  a roadmap that is aligned with the principles and values that fuel your legacy, and shares your wisdom for the intended use and benefit of the assets, the likelihood of infighting, loss to unintended beneficiaries, confusion, and failure, are quite high. What you need is an implementable strategy to preserve and distribute wealth to the next generation through appropriately skilled fiduciaries. 

As you plan for getting your affairs in order or updating your plan to make certain it continues to meet your goals, you might ponder the following:

  • How can you minimize the risk of family disputes particularly when property is left to a large number of beneficiaries?

  • What steps should you take to ensure that your property goes to those intended?

  • What steps should you take to protect your interests particularly when there are multiple people in the family who have been given a share of the property?

It all starts with a foundation of sound, family governance. This is facilitated by three key activities. 

First, hold a family meeting, at least annually. The meeting should include multiple generations of the family and, if applicable, multiple arms of the family tree. This gives voice to each of the members of the family and ensures they feel included in decisions. Consider hosting this important discussion during your family reunion or during holiday celebrations, where everyone has already gathered. 

Second, establish a family mantra or mission statement that draws on your collective guiding principles, values, and wisdom. These are at the core of what bonds us as a family. Through this exercise, families become stronger, able to withstand conflict and outside forces, as well as third-party agendas. Remind members of your family that they have more in common than the differences confronting them, enabling them to sustain across the generations. 

Third, prepare your estate plan and determine which type of plan is most appropriate to achieve your goals and those of the family at large. Estate planning and estate administration, collectively, are the linchpin to securing your legacy. When families plan together, the chance of success increases exponentially.

Part of that planning includes making sure you establish the essential, estate documents—a last Will and Testament, Durable Power of Attorney documents, Advance Medical Directive, and in certain circumstances, Guardianship Declaration for minor children. These documents ensure that a system is in place that appoints only trusted agents to manage your affairs and identifies your true and worthy beneficiaries. 

Some may also consider establishing a trust -- which lets you place highly specific conditions on how and when you want your assets distributed. In general, a trust provides greater flexibility and control over how your property and assets are distributed and when.

Trusts can be a powerful tool to help you accomplish a wide range of goals during your lifetime and long after including avoiding probate, maintaining privacy and confidentiality, protecting beneficiaries, providing for children with varied needs, maximizing flexibility, preserving family wealth, promoting family values, and reducing family conflict.

A legacy can come in many forms. It can be financial, institutional, or instructional. No matter what your legacy looks like, hopefully it includes the sharing of values, life lessons, and is educational and empowering.

As you reflect on your legacy, may we all be motivated to be more effective agents for our collective future. May we continue to plant a seed for the generations that come after us. Doing so honors those who have taught us the strategies for survival, resilience, and endurance, while clearing our path for even greater gains. 

Lisa McCurdy is the founder and Managing Partner of The Wealth Counselor LLC and a member of The Community Foundation’s Professional Advisor community. Lisa is passionate about helping her clients achieve true generational, legacy planning. She has significant, personal fiduciary experience as trustee, trust protector and guardian is uniquely capable of assisting clients with their future plans for care and asset management. She has considerable personal business experience and is aware of the ever-pressing day to day business issues that must be balanced with planning for the future. Further, her team partners with a team of Financial Management, Insurance, Tax Planning, and Valuation professionals to help people protect themselves, their families and their legacy.

This post should not be misconstrued as legal advice but intended for Educational Purposes Only. Contact your advisor(s) for advice on your specific circumstances.