You can view estate planning in one of two ways. It can be perceived as a very basic effort to facilitate asset transfers after you die, but you could choose to take a more comprehensive approach and engage in the process of legacy planning.
This is a very profound endeavor. When you craft your legacy, you proactively make an effort to have an impact even after you are gone. This can be personally rewarding, and it can certainly be of tremendous value to the loved ones that you will be leaving behind.
Let’s look at some of the steps that you can take to preserve your legacy.
Wealth Preservation
If you have been able to accumulate a significant store of wealth, you are in a position to make things easier for your loved ones. However, you do have to be aware of the potential impact of the federal estate tax. This tax carries a 40 percent maximum rate, and this can significantly reduce the opportunities that your family will have after you pass away.
The portion of your estate that exceeds $5.43 million would potentially be exposed to the tax. Your home and other real property that you may own would be part of your taxable estate, and given the high value of real estate in California, you could be exposed to the tax even if you don’t consider yourself to be exorbitantly wealthy.
Fortunately, there are steps that you can take to mitigate your exposure to the estate tax when you craft your legacy plan.
Connections to the Past
Your legacy plan can extend beyond monetary matters. It would be possible for you to connect your family members to their roots if you take certain actions.
Passing along family heirlooms can be part of the equation, and you can share the stories behind the objects in writing.
Speaking of writing, you could record the family history that you remember when you are putting your legacy plan together. When you commit your family history to writing, your loved ones will be able to access important information about their roots, and this knowledge would be available to family members who will come along in the future.
Moral Values
Your loved ones have probably come to you throughout the years seeking guidance during confusing times. You will not be around forever to provide insight, but you could leave behind your moral and spiritual values through the authoring of an ethical will.
Learn More About Legacy Planning
In this blog post, we have shared a few ideas. If you would like to learn more about legacy planning, download our special report on the subject. The report is being offered on a complimentary basis at the present time, and you can obtain access through this page: Los Angeles CA Legacy Planning.
To Schedule a Free Consultation
If you are interested in the possibility of working with our firm after learning these facts, please select our “Workshops” tab to RSVP for a free estate planning workshop. At that workshop you will be offered a free one-hour consultation with an attorney: www.collinslawgroup.com/seminars/
- Living Trust Protections for African Americans Against Medi-Cal Recovery - October 13, 2020
- Don’t Let the State Take Your Child’s Inheritance Just Because They’ve Gone to Jail - October 13, 2020
- Why African Americans Must Protect their Homes - October 13, 2020
