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LEGACY OR INHERITANCE?
Do you plan to pass on a legacy or an inheritance, or both? Are they one and the same?
Estate planning is a relatively straightforward process but not one that many people take on eager- ly. Which is understandable because it is kind of
a morose subject. From a practical perspective, it can be as simple as just a few documents; a will, memorandum, health care and durable powers of attorney. In cases where minor children or complex financial or personal circumstances are involved a trust is another document that is utilized. Those documents while fairly simple on the surface when completed provide a map to whom things go. As a result, the decisions involved in creating them are ones that are usually made very carefully after much thought and consideration. For instance, it could be deciding who a guardian for your children will be in case of your untimely passing. I say the following with a bit of humor: at first glance a decision may look easy but after Thanksgiving with the family there may be a dynamic that you did not consider initially. It could be a decision regarding how to address an heir with a substance abuse issue or even how to handle a child or family member that has special needs.
There is another document though that can be used in estate planning to convey something more. It is not a binding document that is filed by the clerk of court and it does not go through probate court. This document is called a Letter of Instruction. In the case of minor children this letter can explain to the chosen guardians what vision it is that you have for your children. It could say that you would like them to be free to pursue creative or athletic interests. It could convey that you would like for them to grow up with
Craig C. Cochran
Wealth Advisor
1039 Broad St Camden, SC 29020 803.781.1034 www.tenet-wealth.com
certain values or morals, the same ones that you planned to be able to provide into your golden years. In the case of adult children, it could tell them how proud you are of the people that they have become or to continue to stay true to the way they were brought up. It could relay important traditions or family practices that you would like to continue.
In the dictionary inheritance and legacy are synonyms. However, in this context, they are relat- ed but different. An inheritance covers the physical and financial assets but does not cover the legacy portion. A legacy is something that is instilled in people through your behavior. It is permanent or a transformation of that person or persons. Creating a legacy is intentional, it is how you carried yourself or certain things that you found so important that you had to pass them on to those that you love. Normally it is something that was passed on to you or instilled in you. A legacy is not something that can be bought or sold. This is not to say that an inheritance cannot be influential in someone’s life. But a legacy is more important than assets because it can never be depleted or traded away.
Neither an inheritance nor a legacy is an accident; they each take foresight and preparation. Estate planning is an important component to leaving an inheritance and a legacy. The best idea is to work with a financial planner and an attorney who specializes in or deals with these situations regularly. I hope
that this information spurs you into action to either begin the process of estate planning or to reexamine the plans made so long ago. An inheritance is not a legacy, but just like a legacy, it requires planning and deliberate action to be sure it is passed on in the best manner possible.
Tenet Wealth Management A Member of Advisory Services Network, LLC
Craig Cochran is registered with and securities offered through Kovack Securities, Inc. Member FINRA/SIPC. 6451 North Federal Highway, Suite 1201, Fort Lauderdale, FL 33308 (954) 782-4771. Investment Advisory services offered through Tenet Wealth Management, a Member of Advisory Services
Network, LLC Headquarters: www.advservnet.com, 7703520449 . Advisory Services Network, LLC is not affiliated with Kovack Securities, Inc.
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