What Is Legacy Planning?

Legacy planning is the act of preparing how you will bequeath your property and assets to your loved ones after your death. It’s more or less a synonym of estate planning, but the term has gained popularity among financial consultants in recent years. This is perhaps because “estate planning” has come to evoke death, or perhaps because “estate” is associated with the wealthy.

As with estate planning, the typical legacy planning strategy centers around planning the transfer of wealth and assets from you to your heirs. Depending on the size of your estate, this plan may be very simple or very complex.

Some also ascribe more abstract elements to legacy planning. This might include discussing the values you’d like to impart on your heirs, or crafting a family narrative that encompasses more than simply real estate or cash assets. It might also place a heavy emphasis on charitable giving.