
Legacy Wealth Planning FAQ’s

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FAQs
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Legacy Wealth Planning involves creating a comprehensive plan to manage your wealth during your lifetime, distribute your estate according to your wishes after death, and transfer your values to future generations. Your estate encompasses everything of value you own, including both monetary and non-monetary assets such as real estate, business ownership, investment portfolios, insurance benefits, retirement funds, and personal belongings. Your legacy extends to preserving family principles, ethical standards, and civic engagement for those who come after you. This also includes personal treasures like family keepsakes, stories, and the wisdom and experiences you’ve gathered throughout life.
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Traditional estate planning through Wills and Trusts concentrates on building, protecting, and transferring your financial assets and physical possessions. It shields material wealth from probate and reduces tax obligations.
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Many people work hard throughout their lives to build financial security. Eventually, protecting these resources becomes important for both personal enjoyment and passing them to future generations. A well-structured estate plan keeps your assets intact as they transfer to your beneficiaries, preventing unnecessary losses to government processes and administrative costs.
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Traditional estate planning centers on financial assets and primarily seeks to bypass probate and reduce estate taxes. Legacy Wealth Planning, however, encompasses both financial and non-financial family assets while building a personal legacy plan. This approach captures and preserves family customs and principles while also safeguarding financial resources for present and future family members.
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Yes, but your family probably won’t appreciate the result. The state’s default plan, called “Intestate Probate,” ensures government involvement in distributing your assets. Courts must approve bill payments, authorize spousal support, and oversee property distribution, all through public records. Without your own plan, your family faces an impersonal bureaucratic process during their time of grief. Additionally, federal death taxes come into play. Proper estate planning can significantly reduce or eliminate these taxes, something the government’s default plan won’t do for you. Whether you choose a Will or a Family Wealth Trust, all planning professionals agree that having no estate plan creates unnecessary hardship.
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A Family Wealth Trust forms the foundation of a Legacy Wealth Plan and addresses important matters beyond simply avoiding probate.
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A Will directs how your property should be distributed after death. However, the actual transfer occurs through probate, which means “prove the Will” in Latin. After death, your Will becomes public record, accessible to anyone. The court and attorneys control the process, not your family. Probate often proves lengthy, expensive, and stressful during a difficult time. Some individuals have even used information from public Wills to target grieving families. A Living Trust bypasses probate since the trust owns your property. Your chosen successor trustee manages and distributes assets according to your instructions. Another key distinction: a Will only functions after death, offering no help during your lifetime, which matters more as lifespans increase. A Family Wealth Trust can protect and grow your estate while you’re living and provides security if you become incapacitated.
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Most Revocable Living Trusts focus mainly on bypassing probate and reducing estate taxes. A Family Wealth Trust provides benefits during your lifetime and safeguards wealth for both current and future family members.
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You would face what’s called a conservatorship or guardianship proceeding, also known as “living probate.” If you lose mental capacity before death, the probate court appoints someone to manage your assets and personal matters. This court-appointed person must regularly report your financial details to the court. The process typically involves significant expense, time, and loss of privacy.
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Beyond distributing your property like a Will does, a Family Wealth Trust provides these advantages:
- Enables immediate transfer or future trust management and distribution of assets after death
- Creates smooth management transition during incapacity or after death
- Bypasses costly and burdensome probate proceedings
- Reduces estate taxes and delays tax payments for married couples
- Maintains your control over assets after death or incapacity
- Provides peace of mind for you and your family
- Shields your children’s inheritance from potential divorce
- Protects your estate for your children if your surviving spouse remarries
- Provides flexibility for changing circumstances
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Absolutely. Most people who establish a Family Wealth Trust serve as their own trustees. Married couples can serve together as co-trustees. You retain complete control over all trust assets. If you become incapacitated, your selected successor trustee takes over, not someone chosen by the court.
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No. Family Wealth Trusts help you bypass probate and potentially reduce federal estate taxes, but they don’t affect income taxes. As your own trustee, you’ll file tax returns just as you did before creating the trust. No additional returns or tax obligations arise.
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Yes, and you should include all real estate. Otherwise, each state where you own property may require separate probate proceedings after your death. When your Family Wealth Trust owns the property, probate becomes unnecessary anywhere.
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No. Family Wealth Trusts have been legally recognized for hundreds of years. The court system actually runs more smoothly when estates bypass probate, reducing the burden on judicial resources. A Family Wealth Trust serves to carry out your intentions in a streamlined manner according to your specific instructions.
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Few estate planning attorneys provide Legacy Wealth Planning. A basic living trust typically handles probate avoidance but overlooks important protections for you, your spouse, and children. Bring your current trust to your complimentary consultation for a review.
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While you can return to your previous attorney, few offer Legacy Wealth Planning services. For Legacy Wealth Planning, consider contacting a member of the American Academy of Estate Planning Attorneys.
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Not at all. A Family Wealth Trust benefits anyone who wants to protect their family from unnecessary probate expenses, legal fees, court costs, and federal estate taxes. The Family Wealth Trust provides meaningful protection for families of all financial levels. Beyond savings at death, particularly for estates over $100,000, it also offers security and peace of mind during life by avoiding the expense and stress of incapacity proceedings. Additionally, it protects spouses if remarriage occurs after one spouse dies and provides better security for children.
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While any attorney technically can, you’ll get better results working with someone who focuses on estate planning. Members of the American Academy of Estate Planning Attorneys receive ongoing education about changing laws that affect estate planning, enabling them to provide superior estate planning services.
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The most effective approach involves working with an attorney who understands the Legacy Wealth Planning process. This ensures you address both financial and non-financial family assets. The right attorney will help you establish a Family Wealth Trust to protect your financial legacy. You’ll then learn about completing the My Legacy workbook to share your life story, family background, memories, and lessons learned in your own words. Finally, you’ll write a Legacy Planning Letter to distribute treasured possessions that hold sentimental value.