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Difference between estate and legacy planning

On Behalf of | May 19, 2021 | Uncategorized |

Estate planning and legacy planning mean roughly the same thing in San Diego, California. It is the process of transferring your assets to loved ones after you die. However, some financial advisors claim that the scope of planning performed in legacy planning is wider.

What is included in legacy planning?

As with all estate planning matters, your legacy plans for your heirs can be simple or relatively complex. It all depends on what you include in your assets. In addition to distributing assets, legacy planning can include more abstract components. For example, in your legacy plan, you may explain that you want a portion of your assets donated to charity. Perhaps you are interested in crafting a family narrative to get passed down for generations to come. For this reason, legacy planning often includes more instructions than simple estate planning. The primary purpose is for you to decide what you want to leave behind for your family.

Why is legacy planning important?

Transferring wealth is never totally simple, especially if you need to get through the probate process. Probate can take months or years to complete. If you own many assets, get the help of an estate planning attorney so that you can accomplish all of your legacy goals. Your attorney may help you write up a will or a trust depending on what you want to do. Also, it’s a good idea to hire a financial advisor to minimize what you or your heirs will have to pay in taxes.

Estate planning takes preparation. You can get the help you need by speaking with an estate attorney about what kind of legacy you want to leave your family.