Everyone is going to pass away, but we all make an impact that persists even after we are gone. This imprint is going to be felt organically, but there are steps that can be taken to strengthen the legacy that you will be leaving behind. Let’s look at some of the steps that you can take to preserve your legacy in Indianapolis.
Indianapolis Legacy Planning
Address Estate Tax Exposure
Your legacy is not entirely financial, but the financial part of the equation does exist. The monetary resources that you leave behind to your loved ones will be part of your legacy.
These resources can be eroded considerably by the federal estate tax if your assets exceed the amount of the federal estate tax credit or exclusion. In 2014 this amount is $5.34 million.
Asset transfers that exceed this amount are subject to a tax that maxes out at 40 percent.
Fortunately, there are steps that you can take to mitigate your exposure. The implementation of tax efficiency strategies will be essential if you want to preserve your financial legacy.
Pass Down Family Heirlooms
The legacies of those that came before you are equally important. Everyone is a link in the chain.
Family heirlooms have stories behind them. If you take your loved ones aside and tell them these stories, you are doing them a great service, and you are also doing a service to your ancestors who previously owned these items.
An heirloom is technically defined as something of value. Your grandfather’s baseball glove would probably not qualify as an heirloom. However, it may indeed have some significant value. You can transfer this value to your loved ones if you take the time to do so.
Another way to preserve your legacy would be to commit your memories to writing. If you leave behind written memoirs, your family can draw from your personal experiences. This can be meaningful and educational, but it can also be entertaining. Every story that you tell in writing doesn’t have to be heavy and profound.
Lastly, we would like to touch upon the value of philanthropy as a way to preserve your legacy. If you were to set aside resources for the benefit of worthy causes, your name would forever more be attached to charitable endeavors.
There are a number of different ways of doing this, including the creation of a private foundation. We have all heard of very high-profile foundations such as the Ford Foundation and the Bill and Melinda Gates Foundation.
The prominence of these names can lead you to the belief that you must be a billionaire to create a foundation. In fact, most foundations in the United States are funded with less than $1 million.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.