LEGACY - or the lack thereof...

LEGACY - or the lack thereof...

Have you ever been to an estate settlement for a family will? How did that go? Did it bring everyone closer together? Everybody felt comforted and gained value from the experience? Unlikely. Let me ask you another question - What do you know about your great grandfather? Who was he? Even your own parent - do you really know who they were? What they wanted and hoped for? I want to plant a new thought in your mind - perhaps a couple of them. What we leave behind is our legacy and you have an opportunity to influence that - to create something more than it would be otherwise.

Keep in mind that legacy is about more than distributing money to heirs. Historically this was the focus because the next generation needed the help. That’s not true anymore or at least it wasn't prior to the last two years. Many families find that their children and grandchildren are doing just fine. More importantly, assets that are simply gifted as cash will be spent quickly and likely not have any lasting value.

A different approach can create something that still helps but is wrapped in a structure that endures and continues to give over an extended period of time. Think about your wealth and potential in a different way – think of it as an opportunity to create Legacy and not just leave something behind.

Here's a few concepts from master teacher Scott Marsh who I admire greatly and appreciate his thoughts on the topic of Legacy:

Longevity

Plan on you and your family each living much longer than they did in the past. Developing technology indicates that it is likely that life can be extended hundreds of years. Many of these technologies are forecast to be available by the year 2045. Make it to 2045? Plan on living a very long time. Even without that, many of you will live well beyond 100. Regardless, think about structures, programs and opportunities that can last a long time. Things that keep on giving.

Endowment mindset

An endowment in its typical definition is a gift or a fund granted to a university, hospital or charity. The concept is that the gift is to be invested and then only the investment growth is to be spent – never the principal gift. If a portfolio grows 8%, then subtract the inflation rate from the prior year and then the endowment only spends the amount that remains. Don’t ever strangle the golden goose or chop down the money tree. Only use the eggs or the fruit.

Giving

Create a family fund or scholarship fund that serves a group or charity that you care about. Use the funds to build upon values and principles that are meaningful to you. There is always a tremendous humanitarian need throughout the world. Create something that makes a difference.

Ancestry

Forecast a time into the future where the third generation distant from you are now young adults. What do they know about you? How has your life experience and the many things that you’ve learned helped them? Do they even know who you are? Consider creating an autobiography, a memoir, or learnings diary. What about a family library? We've all seen cool things from 'old' families in Europe or Asia that handed things down like art, gifts, family crests, signets, rings, or other family tokens. Those aren't mystical - they just have to be thought about and created. Plan to have an impact into the distant future.

Communication

How can you better communicate during your lifetime and after your lifetime? Journals, family histories, traditions (those that build and strengthen), key learnings revealed at specific important times. Think about ways to teach, to lift and to inspire both during your lifetime and after your lifetime.

Yield

People working in the agriculture industry spend a great deal of time tracking and monitoring yield. Small changes can often have an incredible impact on the value of a harvest over time. Think about what you are planting and what you expect to yield. A person should not plant carrots and expect corn. Consider also the time value of money structure with compounding investment over time. Perhaps your family fund doesn’t grant an award for 50 years – now what has that portfolio grown to and what could it do? Think about yield and outcome in your planning.

Spend some time and ponder a bit on these topics. If you'd like help putting something together, please reach out - I'd be happy to help