Financial Planning-Part 1-Getting Organized

In their book, Living Forward: A Proven Plan to Stop Drifting and Get the Life you Want, Michael Hyatt and Daniel Harkavy indicate the legacy we leave behind is the result of working towards a much larger plan. Predetermining in advance the assets we hope to leave behind (intangible and tangible) help us live to life with purpose.

Intangible assets including; the values or reputation, the commitments, and the knowledge we plan to leave behind can be easier transferred by first understanding what it is we are trying to pass on. Once intangible desirable are identified back engineering can be used to help determine today’s actions to get tomorrow’s desirable results.

When it comes to transferring tangible assets that make up our estate the same process can be used. Rather than always working towards an unknown asset value focus on a fixed number and use back engineering to help determine today’s actions. If the value of our estate is the sum total of our net worth, possessions and other assets that are controlled or owned then before we can determine what actions we need to make today to get tomorrow’s results we first have to better determine what we want to pass on.

When it comes to transferring or distributing tangible assets typically it can be done 4 ways;
1. Wills,
2. Gifting
3. Joint Ownership/Tenancy-in-common
4. Living/Family Trust

When developing your dream team, the lawyer will play a key role in helping to determine which estate distribution strategy should be used to meet objectives.
Together intangible and tangible so that they can be used to help others leave their legacy.

What legacy do you want to leave behind?