Phil Cubeta, planned giving expert and friend of the Foundation, shares four critical checkpoints, or bases, for you to consider as you plan your own legacy.
How much to each heir?
On first, we ask if we have enough for ourselves. On second, we ask how much is enough, in what form, and when, for our heirs. For some, maybe 3-5% of this country, even accounting for all expenditures and emergencies to life expectancy, even assuming down markets, net worth rising, etc. some of us are in that position. Call it planning for abundance rather than scarcity.
How much to pass on to heirs is part algebra and part moral dilemma. How much is enough and how much is too much? Every study for twenty years has said this is the question that torments parents and grandparents planning for abundance. So, it may be best to use a worksheet. Add up what you want heirs to get. Include grandkids. Add it up again. Then subtract what you want them to get from what you have. On second base, some of us find that we have something left over after subtracting what we feel is enough for the heirs. We are rounding second, headed for third.
Philip Cubeta, CLU®, ChFC®, AEP®, MSFS, CAP® is the Sallie B. and William B. Wallace Chair in Philanthropy at The American College. Phil Cubeta is responsible for the Chartered Advisor in Philanthropy® (CAP®) curriculum. Phil’s original training was in English Literature, Philosophy, and Psychology. He also holds the Masters of Science in Financial Services (MSFS) from The American College. He serves on the board of The National Association of Estate Planners and Councils.
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