What Is Legacy Planning? Definition

Why it matters

Legacy planning goes beyond money. It can cover who gets what, who handles your affairs, and how family will pay for final costs. Life insurance can leave a defined amount to a chosen person with a named beneficiary. Keep beneficiary forms current. Taxes and laws vary by state and situation. An attorney or advisor can help with larger estates. This is general information, not legal or tax advice.

Source: law.cornell.edu

Related terms

Estate: An estate is everything a person owns at death, including property, bank accounts, and investments, minus debts. It is handled under a will or state law.
Probate: Probate is the court-supervised process of proving a will, paying debts, and passing a dead person's assets to heirs. Rules and time frames vary by state.
Beneficiary: A beneficiary is the person or organization the policy owner names to receive the death benefit when the insured person dies. A policy can name one or several beneficiaries and can split the payout by percentage.
Advance Directive: An advance directive is a legal document that states your health care wishes, or names someone to decide for you, if you cannot speak for yourself. A living will and a health care proxy are common types.
Whole Life Insurance: Whole life insurance is permanent coverage that lasts for the insured's entire life as long as premiums are paid. It combines a guaranteed death benefit with a cash value that grows at a rate set by the insurer.

All 241 terms

Why it matters

Talk to a licensed agent.