Leaving More than Money: How to Pass Your Values Down to Your Heirs
If you want to create a legacy and make an impact on your family even after your pass, money is only part of the equation. Planning to leave bank accounts and real estate to heirs can help secure their financial future, but what about a legacy supporting their social and emotional futures? Is it possible to pass your values down to your heirs too?
While you can’t control what happens after you die, you can take retirement planning and estate planning steps that help increase the odds of successfully instilling important values in your children, grandchildren, and others you want to inspire.
These actions can go beyond what you’ve already modeled through day-to-day parenting. They can be more focused on creating a long-term legacy.
Write Down and Share What Matters to You
The first step to passing on your values, even after your lifetime, is to write down what matters to you. Doing so can be helpful to gain clarity for yourself while creating a document that heirs can revisit long after you pass.
You might decide to write down things like:
Why family is important to you
Why you made certain decisions (e.g., how you chose your profession, such as becoming a doctor to fulfill your desire to help others)
What you want to be remembered for
How you think your heirs might give back to others
What you’d like the world to look like in 10 years, 50 years, 100 years, etc.
Once you have this initial clarity, you can more easily communicate what matters to you, whether that’s by sharing the document or talking about these values with your family.
Lead by Example
The next aspect of passing values down to your heirs is to lead by example as you figure out how to spend your time in retirement.
For example, if you want to pass down values like generosity, you might decide to spend more time volunteering while retired. If you value education, you might audit classes at a local college. If you want to make sure your children and grandchildren appreciate the importance of family, you might host more dinners with them or plan more family outings.
Whatever you choose can be helpful both in making your retirement more enjoyable and showing your heirs what matters to you. Perhaps you didn’t have as much time as you wished during your career to lead by example in certain areas, but retirement could give you the flexibility to do so.
Align Your Finances with Your Values
Another component to passing down values is aligning your finances with what matters, rather than just passing on large sums that don’t have much meaning attached. For example, you might specify in your will that you want to leave a certain percentage of your estate to charity.
The philanthropy you support after you pass can serve as a reminder of your commitment to giving back while also implying a certain meaning based on the charity you give to. Leaving part of your estate to an environmental organization, for instance, could encourage your heirs to also protect the environment.
You might also align your finances with your values by making ESG investments. Showing your heirs that you didn’t just invest in any company that could turn a profit but thoughtfully chose ones that make a difference could inspire them to make similar choices in their lives.
Prepare to Pass Down Your Values
Passing down values to your heirs might not be as straightforward as passing down assets. But by taking steps to share what matters to you and what you would hope your heirs value in their lives, you can hopefully make that succession more likely.
Speaking with a financial advisor can help when it comes to passing down values. An advisor can help you clarify what is important to you and help implement financial, tax, and investment strategies to align your values and money.
Our fiduciary financial planning firm in Roseville and Folsom, California, works with clients to build a financial plan that helps them live fulfilling retirements and pass on the legacy they envision.
Schedule a complimentary, 15-minute call with a fee-only, fiduciary financial advisor today to discuss your personal situation.
This material was prepared by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax or legal advice.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.