Changing Perspectives on Legacy

Merriam-Webster Dictionary’s definition of the word “legacy” is: “Money or property you receive from someone after they die.”  

Frankly, that’s a pretty traditional, one-dimensional, and even old-fashioned way to think about legacy in estate planning. Because estate planning is more than just managing assets and designating beneficiaries. Through estate planning, you have the power to communicate your values and inspire future generations of your loved ones to live with purpose and commitment. 

As estate planners, our objective is to help you achieve your estate planning objectives. More often than not, those goals involve supporting your loved ones and the communities they belong to. In fact, legacy has traditionally been tied to using wealth to positively impact loved ones, charities, and one’s community after passing away. But over recent years, we’ve seen a shift in client preferences. Some are moving away from the traditional model of leaving wealth behind and are instead embracing the concept of a “living legacy.” What does this mean? It means that people are electing to redefine their legacies by making a meaningful impact while they are alive. This shift from “legacy planning” to “living legacy” allows people to actively participate and enjoy the positive changes they can create.

Having an estate plan is still a critical component of your financial journey. However, with a “living legacy” mindset, being able to support loved ones’ dreams and financial stability now can be a gift for both them and you in the present. Living legacy means operating in the moment, perhaps offering support and assistance by:

• Paying off high-interest loans
• Investing money in a family member’s new business
• Helping with medical or dental bills
• Gifting special opportunities for your grandchildren, such as art or gymnastics lessons

A living legacy might also include:

• A down payment on a first home
• A one-time cash gift
• Paying some burdensome outstanding debts, such as college loans

And don’t forget about using your assets to create memories for your family. Determine what type of experience you want to create. Is it a once-in-a-lifetime European vacation, or an annual family reunion at the beach? A Long Island estate planning attorney can help you creatively think about how your assets can create memories now for your loved ones. 

Legacy and Estate Planning Is For Everyone

A persistent misperception about estate planning is that it is only for the wealthy. In fact, estate planning is an inclusive event that encompasses all who have something to leave as a legacy, whether it’s money, a house, or family memorabilia that carry stories and histories.  We recently celebrated Memorial Day, and thinking about military families and legacy can be instructive. For most of them, Memorial Day carries deep significance and may be a way to inform their approach to estate planning. A grandfather’s Distinguished Service Medal, a father’s service record, and similar memorabilia tell stories of courage and sacrifice. But without proper care, planning, and a legacy plan, they risk being lost and their significance eroded. 

How To Get Started With A New Vision Of Your Legacy

If you want your loved ones to benefit from your legacy now or later, you must analyze who needs what kind of assistance and the best way to provide it to them. In a “living legacy,” you can transform the way you approach sharing your assets and wealth by shifting the paradigm to investing in meaningful relationships today. Begin by clarifying what is most important to you. This could be the people in your life you want to spend time with, the types of memories you want to create, or even the places you want to experience together. With an Estate Plan, you are leaving assets for them after you are gone.  Either way, here are some things to start reflecting on:

• Family: What are your family values? How do you want your family members to treat each other and the communities in which they live?                       
• Community: Do you want to leave an impact on your community and, if so, how? Think about your neighborhood, your local library, your city parks, the organizations you participate in or contribute to that are locally-based such as environmental organizations or pet shelters.
• Education: Is education an important value for you? How can you inspire others to seek educational opportunities and also to improve their lives through learning? How can you financially support the educational opportunities that are important to you?
• Social Responsibility: What type of social responsibility should be a part of your legacy? What type of donations align with your values of justice and equity? Organizations that align with your values in the area of social responsibility could include anti-defamation organizations, organizations that seek to reduce food insecurity, environmental protection organizations and similar groups.
• Faith and Spirituality: What are your faith traditions and how can you honor them? Think about opportunities such as funding a library or a speaker series at your church or synagogue.
• Personal Growth and Development: How can you use your assets to support programs that will help people thrive and grow? 

As you reflect on these things that are important to you, you may decide to include them in your overall estate plan now or later so that you will always be honoring your beliefs.

Contact Davidow, Davidow, Siegel & Stern 

Leveraging your wealth and other resources to have a positive impact on loved ones, your community, and beyond is an incredibly meaningful way to redistribute your wealth. Changing your mindset from leaving assets to beneficiaries at your death to actively participating in the use of your assets as a “living legacy” can be an exciting and empowering option. 

Here at Davidow, Davidow, Siegel & Stern, estate planning isn’t just about documents. It’s about making sure your voice is heard. And we can also help you do that through trusts, special needs planning, and probate and estate administration. We’ve been here for over one hundred years, helping our clients clarify their values and legacy plans. And we can help you, too. Contact us today and let us help you understand the power of your legacy.