A Checklist of Legacy and Estate Planning Topics for Your Family

Did you know that 70% of high-net-worth families lose much of their wealth by the second generation? That number grows to 90% by the end of the third generation, as noted in an article by Money.¹

Families can take steps toward securing their financial futures by working with their advisors to organize transparent conversations about legacy and estate planning. Almost all advisors (82%) say transparency into family finances is of critical importance to raising children who understand the value of money, according to Key Private Bank’s Advisor Poll focusing on the next generation.² Yet, nearly half of advisors (44%) do not see their clients having open and consistent dialogues about family finances.

Not sure what legacy and estate planning topics are relevant to you? Here’s a checklist to start.

• Know the difference between an estate and legacy plan, and discuss them both.

  • An estate plan addresses assets, such as property, family heirlooms, and money.
  • A legacy plan addresses non-financial capital, such as family history, traditions, values, and philanthropic goals.

• Begin by considering your vision for your family’s future.

  • What would you like to pass down to your children and grandchildren?
  • What are your family’s short-term, medium-term, and long-term goals?
  • Are your finances set up to meet your family’s goals?
  • Are your children facing unique circumstances, such as multiple marriages or disabilities, that would impact the family’s future?
  • Are your heirs prepared to be good stewards of their inheritance?

• Work with your advisor to create and collect the documents needed to maintain and manage your estate over the long term.

  • Will
  • Certificates
  • Trusts
  • Bank account and retirement plan information
  • Deeds
  • Debt and tax information

• Discuss long-term care and diminished capacity, and determine who has decision-making power in the event of a medical emergency for all adult family members.

  • Financial power of attorney
  • Healthcare power of attorney
  • Living will
  • Long-term care insurance

• If you’re a business owner, think about a succession plan and how your family will play a role.

  • Who will take over the business, and how will it be operated?
  • What are the ownership splits with your partner(s)?
  • What is the exit strategy?

• Don’t forget to take inventory of your digital assets and how they factor into your estate, and keep a secure, up-to-date record of all passwords.

  • Email and social media accounts
  • Websites
  • Online memberships and credit card purchases
  • Online banking accounts
  • Digital intellectual property, such as writings or photography

• Create a schedule to update your estate and legacy plan with your advisor on a recurring basis to factor in any changes to your wishes.