People often think of their money as merely being a tool that helps them get stuff done and live a good life. But its value often goes beyond that to the people around them.
That’s why it’s incredibly important to consider your financial legacy or the monetary impact you will have on your friends and family in the future. You want to make sure that your assets go to good use once you’re gone.
The purpose of this post is to explain why your financial legacy matters. We discuss some of the reasons you should take it seriously and how it can help your life have more impact.
Supporting Your Loved Ones
Perhaps the biggest reason your financial legacy matters is that you can use it to support your loved ones. Extra money left over from when you’ve passed is a tremendous boon to your next of kin, particularly when buying houses or paying for big-ticket items, like education.
Because of this, you might want to consider applying for a federal EIN for a trust. Opening one of these can prevent your beneficiaries from having to go through probate and it might also reduce estate taxes.
You can also use your financial legacy to continue your values. Designating funds for a cherished project enables you to continue doing good in the community, even when you’re gone.
Where you put your funds is up to you. Most people choose schools, colleges, charitable donations, or good causes.
Preserving Family Unity
Managing your financial legacy is also an excellent way to preserve family unity. Proper estate planning discussed well in advance makes it clear precisely who will get what.
The main goal is to avoid conflicts between various parties. Setting out your financial legacy and precisely what you want to happen reduces the risk of conflict and helps to maintain the peace.
You might also want to invest in your financial legacy for personal fulfillment. While spending money has its benefits, many people experience greater pleasure by reflecting on their life’s accomplishments and considering their values and priorities. Ideally, you want your money and financial resources to align with your values and how you’d like to see the future play out.
Inspiration For Future Generations
Your financial legacy is also a source of inspiration for future generations. If your descendants see the impact you had in your life, it could incentivize them to do the same in theirs.
It can also help them to carry forward your values. If they see you worked and invested your entire life, they are more likely to do the same. It’s a way of showing them how to be financially responsible and invest in the people around them.
Finally, your financial legacy matters because of community development. Leaving funds to local projects and programs can help the people in the local area who supported you. Contributing to the community’s long-term financial well-being makes it considerably more sustainable and creates a more positive legacy for you that your family can enjoy.
Thank you for reading!