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By Prudential, Corporate Sponsor
Women are doing incredible things: Leading multimillion-dollar companies, making a meaningful impact as entrepreneurs, and much more. While such achievements are certainly noteworthy today, you don’t want to overlook your tomorrow and the type of impact you’ll have then. The financial legacy you’re able to leave in the future is directly connected to the steps you take now, including how you plan your estate.
It’s important to have a plan not only for your retirement years, but also the time after that. How will you provide financial security for your family or support a cherished cause after you’re gone? Estate planning is helpful in organizing this plan and establishing how your financial legacy will be passed on.
First, you’ll need to become familiar with some of the main estate planning documents, if you aren’t already. A will clearly outlines your wishes upon death and how funds and other assets should be distributed. With a trust, you can designate specific instructions for when, how, and to whom your assets should be distributed upon your passing, all of which is monitored by a trustee.
As for who receives what, you’ll need to decide your beneficiary arrangement between 3 main types. When an individual is named beneficiary, the assets go directly to them and can be paid out either as a lump sum or they can arrange for periodic payments. Trusts can also be named as a beneficiary, although this process is relatively complex and guidance from expert legal council may be needed. Lastly, a charity can be named as beneficiary and selected to receive all, or a portion of the proceeds.
Knowing how you want to support your heirs and those around you once you have passed on is an important plan to establish for yourself. Connecting with an experienced financial professional can help you get things in order.
For more information, read: https://www.prudential.com/financial-education/how-to-create-a-financial-legacy
1024034-00001-00 Sponsored by Prudential