Are Legacy Planning Goals a Priority

Are Legacy Goals a Priority?

Integrating Legacy Values into LTC Planning Orientation toward “Leaving a Legacy” Individuals, partners, and families hold a variety of perspectives regarding the value of leaving assets for heirs and charities. For some, “leaving a legacy” (inheritance) is extremely important.

Often these individuals have been the beneficiaries of a legacy gift from a parent. However,

others feel less inclined to plan an inheritance for heirs or charities. They may believe that their children are capable of finding financial success without their support, or that an inheritance may not be beneficial to a child.

When considering legacy planning, individuals often identify with one of the following perspectives:

“Die with a nickel in my hand” Individuals with this perspective often intentionally choose not to leave a financial inheritance for heirs or charities. This is a perfectly legitimate value, and advisors are remiss in attempting to redirect clients in this choice. However, when couples have opposing values (for example, one client is oriented this way while another is not), it can be challenging to clearly define financial goals. When an individual or couple has this orientation, we advise ensuring that the “last nickel” is in the survivor’s (living spouse’s) hand, who may be in need of it. We also advise that literally planning to the “last nickel” is not possible as variables in needs, unforeseen events, and investment returns are never precise.

A financial plan must accommodate a margin for error.

“If there is anything left” Individuals with this perspective may find fulfillment in leaving an inheritance, but they are not inclined to protect this goal at all cost. This orientation is often typical of self-made “boomers” who feel that their children are as capable of “making it” as they were. These clients will go to some length to plan a legacy, but the commitment definitely has limits. They will often create a compromise plan to insure part of the financial risk associated with Long-Term Care while also retaining part of this risk.

This may mean they pursue Long-Term Care insurance that will pay for part, but not all of the costs.

“We’ve spent thousands planning”

Integrating Your Legacy Values

Individuals with this perspective often have already

Clearly defining your own orientation towards leaving a legacy, as well as that of your partner, can greatly enhance the likelihood of a cohesive plan to accomplish your financial goals. For some this includes passing on financial assets.

For others their legacy may not be tied to financial gifts. Knowing what you value will help your advisor guide you to an appropriate Long-Term Care plan.

done extensive planning and spent significant financial resources (on legal documents, advising fees and insurance) to plan a financial legacy.

These plans have been crafted to avoid estate taxes or other consequences that may lessen a financial inheritance for the next generation or charity. A solid Long-Term Care plan will further secure the likelihood that these carefully-laid legacy plans are effective and not exhausted on the cost of potential Long-Term Care services.

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