What’s the difference between legacy planning and estate planning?
Name withheld
Madelein Steenkamp, Legal Specialist at PSG Wealth, responds: Legacy planning and estate planning are essentially the same thing. Both address the planning and management of an estate, although legacy planning just takes it one step further – it also looks at the intangible assets and the legacy you want to leave behind and values you lived by.
An estate plan includes your will, and takes into account the liquidity and impact that estate duty and other estate expenses will have. The plan will determine the maintenance and financial responsibility of a spouse, family or other dependants, and is a vital part of making sure that your wishes are carried out.
Legacy planning includes the above aspects of estate planning but carries it a step further by including immaterial assets that are crucial to your legacy, such as values and philanthropy, to potentially last generations after your passing. It also sees to the proper distribution of your wealth and ideals but also includes the process of preparing your heirs for the wealth they will receive.
PERSONAL FINANCE’S MONTHLY LETTERS FEATURE IS SPONSORED BY PSG WEALTH
Email your queries to [email protected]