Money and property may be the most discussed types of wealth that a person owns, but the riches of their experience and wisdom can mean even more to loved ones down the line. Reinforcement of family traditions can be built into your estate plan alongside your wishes regarding the distribution of your money, property, and belongings. After all, what really makes a family is its values and traditions—not the finances that are left behind.
An excellent way to share your values with your loved ones is to hold a family meeting to discuss what matters most to you. In addition to sharing your wisdom, you may make it more likely that your loved ones will handle their inheritance responsibly, especially if they understand the reasons behind the choices you have made in your estate plan. This is one of the many reasons for having a family discussion about your legacy and estate plan.
How to Tell Your Story Through Your Estate Plan
It can be delightful to hear your elders’ stories of their fondest memories and wildest adventures, as well as the struggles they overcame to get the family where it is today. Such wisdom provides meaning for a financial legacy that otherwise might be viewed as just a lucky windfall. As part of your estate and legacy planning, you may decide to record your own personal history of triumphs and tribulations through one or more of the following methods:
- Audio files. With the prevalence of smartphones, most people are carrying around the easiest device for recording their thoughts. Through a variety of apps, you can record stories or lessons as they occur or as you remember them.
- Video files. The same goes for home movies and other video recordings. Older film formats can be easily digitized and organized along with the videos from your phone. Today’s technology also makes it easier than ever to add narration and context to a video, making the story all the richer.
- Photo albums. Many families have prized photo collections that catalog generations. It is a tragedy when something like this is lost in a fire or an extreme weather event or misplaced during a move. Creating a digital database is a favor to your family in more ways than one. Not only will they have access to these memories at any time, but they can also feel secure knowing that these family treasures will not be lost and that multiple copies can be made for the different branches of the family. In addition, most of us are capturing our favorite moments by using our phones to take pictures that can be stored on the phone or in the cloud or saved to a separate device to be protected.
- Letters and other writings. In your legacy plan, you can provide handwritten or typed letters or stories to your family members, to be received and read at a time of your choosing. You may also choose to include past correspondence, mementos, and postcards that have been tucked away somewhere. Reliving your memories of the past through your old letters and postcards can be a great way for younger generations to get to know and sincerely appreciate your life journey and legacy.
Passing Your Values to the Next Generation
Some estate planning strategies blend your finances and personal values. Whether you feel most passionate about the need for your beneficiaries to travel and gain worldly experience, continue a unique family tradition such as sailing or astronomy, or support meaningful charitable or spiritual work, we can draft trusts that hold and distribute funds for these endeavors.
- Educational trusts. If you value education, you may want to set up a trust to fund trade school, undergraduate and graduate degrees, study-abroad programs, or even community classes for your family’s future generations. Because of sharp increases in educational costs in the United States, your grandchildren will likely benefit immensely from an educational trust. Depending on the generation, you may also be able to use a special type of educational trust as a tax strategy.
- Incentive trusts. Similar to the way educational trusts set aside money for funding a beneficiary’s schooling, incentive trusts can also help steer the course of your loved ones’ lives by encouraging some paths while discouraging others. For example, an incentive trust could contain instructions for disbursements to be released when the beneficiary is working a part- or full-time job. If family vacations were an important part of your upbringing, you could set aside funds specifically for your grandchildren to experience the same wonderful traditions you enjoyed.
- Charitable trusts or foundations. Charitable trusts or foundations establish a family legacy of supporting a particular cause, but they may also have the added financial benefit of reducing income and estate taxes. They are an excellent way to benefit a charitable organization central to your core values and associate your name with that philanthropic effort for generations to come.
Are you curious about exploring a few of these options in your estate and legacy plan? Call us today, and we can schedule an appointment to review options for showcasing your memories and values in a long-lasting way that truly benefits your loved ones.