Have you heard people talk about how they want to build a legacy?
Mention they want to set their family up for ‘generational wealth’?
That all sounds good.
But how do you actually do that?
Have you ever thought about what comprises “a legacy”?
In truth, only those that know us will remember things about our personalities, tendencies and preferences. People only remember how you treat them. Not you for you.
With that in mind, creating a legacy is really a framework and system for ensuring that your wishes are carried out and that your family benefits from the hard work you put in every day.
It’s really sad when a person leaves an inheritance that the children squander or do not adequately honor the person who worked so hard to create a life for them.
To create a legacy, besides having the idea, you need some practical items in place to make it a reality. They are:
- Life insurance
- A will
- A trust
Life insurance is for when you want to leave more money that you already have to your loved ones. It’s a way to create liquidity when there may not be any.
A will determines where you’d like your assets to go.
A trust is a legal entity that, when funded, owns assets that are not tied to the lifespan of any one individual but can benefit numerous people.