It is common for high net worth individuals to think about their assets when it comes to estate planning. While these assets are important, there are other things that need to be looked at as well. Individual needs to consider the legacy they wish to leave behind.
It is never too soon for a couple and their adult children to start discussing a legacy plan. This should begin early. These conversations typically involve accountants, estate planning attorneys and a wealth adviser. The conversations would involve the family's financial plan and their non-financial goals. Their non-financial goals would relate to what they would like their family to accomplish in the generations after them. The plan needs to be written out in order to be legally put into effect when it is needed.
There are some things that families overlook as they discuss their legacy plan. Their net worth needs to be accurate. It is common for families to create a plan and then experience an increase in their net worth later without factoring that into their legacy plan. It is easy to procrastinate this because everyone lives a busy life. One way to avoid this problem is to work with a team of professionals and designate someone to update the plan on an annual basis.
It is also important to coordinate a business succession plan and estate plan in order to avoid problems down the road. Everything needs to be documented in order to be sure that the plan is legally binding. An estate planning attorney may be able to answer questions about trusts, tax planning and wills. They may be able to draw up documents and provide other help services.