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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> We\u2019re heading into the thick of the $90 trillion \u201cGreat Wealth Transfer<\/a>,\u201d which will see millions of people belonging to the Gen X, millennial and Gen Z cohorts inherit money from their boomer loved ones as they pass. As chatter around the Great Wealth Transfer gains steam, the importance of legacy planning<\/a> is making headlines. But legacy planning isn\u2019t just for boomers \u2014 it\u2019s something anyone who wants to pass anything down to loved ones should be doing.<\/p>\n Legacy planning can be complex and is best done with the help of a competent financial advisor who can guide you through the ins and outs. Here are eight truths about legacy planning that any solid financial advisor should share with you.<\/p>\n<\/p>\n Legacy Planning Is Suitable for Everyone, Regardless of Wealth or Age\u00a0<\/p>\n Legacy planning isn\u2019t just for the ultra-wealthy. It\u2019s for anyone who has something \u2014 anything \u2014 to pass down to loved ones. A competent financial advisor will help you build a plan<\/a> that honors your accomplishments and your wishes, regardless of your net worth or age.<\/p>\n \u201cWhether you\u2019re 25 with digital assets or 65 with a retirement account, having a plan in place ensures your wishes are honored and loved ones are spared unnecessary legal and financial burdens,\u201d said Andres Mazabel, general manager, advisor at Trust & Will.<\/p>\n Legacy Planning Isn\u2019t Only About Assets; It\u2019s Also About Intention\u00a0<\/p>\n A financial legacy, in terms of its assets, may not feel very poetic. You\u2019re leaving a certain amount of things to a certain amount of people, and that\u2019s that. It appears to be merely transactional. But a competent financial advisor will push you to think deeper.<\/p>\n<\/p>\n \u201cToo many people think legacy is simply a will and an investment portfolio,\u201d said Andrew Constantinides, CFP,\u00a0investment advisor and RSU strategist at Neil Jesani Wealth Management, LLC. \u201cBut true legacy planning begins with clarity of goals and intent.\u201d <\/p>\n Constantinides encourages clients to start by asking, \u201cWhat do you want your wealth to do after you?\u201d He says a good advisor will help coordinate with estate planning attorneys to translate that vision into structures like trusts, charitable foundations, or generational investment vehicles<\/a>. <\/p>\n Legacy planning, he noted, is not just about giving money away \u2014 it\u2019s about preserving values, minimizing future uncertainty, and making a lasting impact.<\/p>\n Inheritances Can Rattle Family Dynamics \u2014 Guides and Guardrails Are Needed\u00a0<\/p>\n Even the happiest and most peaceful families have \u2026 issues. And an inheritance could very well set those issues ablaze. A thoughtful advisor won\u2019t just focus on paperwork \u2014 they\u2019ll also help you navigate family dynamics.<\/p>\n<\/p>\n Steve Lockshin, founder and financial advisor at Vanilla, emphasized that advisors should help families build governance structures, create clear distribution policies, and choose trustees thoughtfully. In his experience, money has the power to enhance generosity, opportunity and connection \u2014 but only with careful planning.<\/p>\n \u201cGood planning acknowledges the emotional weight of inheritance and installs rails to guide, not just guard, the wealth,\u201d Lockshin said. \u201cIn doing so, it helps prevent the trust from becoming a source of conflict and instead positions it as a force for good.\u201d<\/p>\n Legacy Planning Is an Act of Love, Not of Control\u00a0<\/p>\n When you start planning your financial legacy, you may worry you\u2019re being a little bossy. Melissa Cox, CFP, owner at Future-Focused Wealth, noted that good legacy planning about making life easier for heirs, not controlling them. <\/p>\n \u201cGood legacy planning isn\u2019t about managing people from the grave, it\u2019s about ensuring they\u2019re cared for and that your intentions are respected,\u201d she said. \u201cThat\u2019s love, not control.\u201d<\/p>\n Taxes Are Your Legacy\u2019s Biggest Threat\u00a0<\/p>\n It\u2019s rational to assume that market volatility<\/a> is the biggest threat to your legacy. But Constantinides notes that the most formidable threat to legacy wealth is something rarely talked about: taxes. A skilled advisor will plan for these headwinds in advance.<\/p>\n \u201cThe right advisor will focus on growing your wealth while minimizing exposure,\u201d Constantinides said. \u201cThat means understanding tools like step-up basis, 1031 exchanges, real estate depreciation techniques and the tax treatment of income-generating versus capital appreciation investments. Good legacy planning isn\u2019t reactive. It\u2019s engineered, then re-engineered on an annual basis.\u201d<\/p>\n<\/p>\n Liquidity Matters\u00a0<\/p>\n According to Constantinides, one of the most overlooked elements in legacy planning is liquidity. Many estates consist of illiquid assets \u2014 real estate, business interests or long-term investments \u2014 that can\u2019t easily be turned into cash when heirs need it.\u00a0<\/p>\n \u201cWorking with an advisor can ensure a portion of your estate is arranged for liquidity so beneficiaries aren\u2019t racing to cover taxes, legal fees or distributions,\u201d Constantinides said. \u201cWhether through fully liquid vehicles like managed equity, semi-liquid private market funds or a laddered fixed income approach, liquidity planning is a cornerstone of a successful transfer of wealth.\u201d<\/p>\n Legacy Planning Isn\u2019t Only About Passing on Wealth, It\u2019s About Passing on Wisdom\u00a0<\/p>\n A competent financial advisor will also help you think beyond the numbers. Legacy planning is just as much about sharing your values, beliefs and financial lessons learned<\/a> as it is about passing on wealth.<\/p>\n<\/p>\n \u201cI want my clients to feel proud of the story their money tells \u2014 not worried it will become a source of stress or division,\u201d Cox said. \u201cThat\u2019s why we start with the human part first and let the technical tools follow.\u201d<\/p>\n Legacy Planning Starts Today\u00a0<\/p>\n Legacy planning should start now, even if you\u2019re young and haven\u2019t built up much in terms of assets.\u00a0The sooner you start, the more flexibility you have, and the more peace of mind you\u2019ll gain.<\/p>\n \u201cPlanning early allows you to have compounding, protection, and market cycles to be on your side,\u201d Constantinides said. \u201cA good advisor brings structure to the strategy, whether that means naming beneficiaries properly, setting up trusts or shielding a family business from probate. The earlier you plan, the more options you leave behind.\u201d<\/p>\n<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/05\/icon-20.svg\"){kind=icon}
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