As financial planners and wealth advisors, we spend a lot of time talking to clients and answering questions about quantifiable things: balances in accounts, percentages of assets allocated in various ways, market returns, tax brackets. We also discuss many legal matters that affect our clients, such as the terms of wills and trusts, structures to manage risk, and other similar matters. Naturally, these are important conversations, and our central focus is always to provide advice and guidance in these areas that puts our clients’ best interests foremost.
But when you stop to think about it, the most important things in life can’t really be described or contained in numbers or legal language, can they? For example, what dollar value would you place on your relationship with your spouse? With your children or grandchildren? Can any kind of price tag be put on love? On finding meaning in life? On leaving the world a better place than you found it?
Clearly, what matters most—what makes us who we are and causes us to matter to the people around us—has more to do with qualities than quantities. Our faith and core values, the people and causes we care about, the guiding principles that govern our lives and choices: these are what define us. And these are what we most desire to pass on to those who come after us.
What is a legacy letter?
One of the best methods for ensuring our heirs and others understand and value our core principles and beliefs is crafting a legacy letter (sometimes called an “ethical will”): a non-binding but valuable document that comprises and shares your beliefs, life lessons, hopes for the future, and reflections on what matters most. In fact, a legacy letter can become one of the most important parts of your estate plan: the lens through which the legal, financial, and other aspects of your planning can be interpreted.
Remember, your estate plan is about more than simply dividing your property after your passing. It is also a tangible demonstration of your concern for your family, your hopes for giving them a more secure future, and your desire for them to experience wholeness, connection, and opportunity, even after you’re no longer around to provide them directly. When included with your estate communication, your legacy letter can help to transfer values, family legacy, and other aspects of what might be called “emotional wealth” to those who are most important to you. Not only that, but a legacy letter can also serve as a reference for future generations: a sort of “values foundation” that can support those with the responsibility for maintaining and growing the legacy that you left behind.
What does a legacy letter add to the estate plan?
A legacy letter can be used to document and clearly communicate several important concepts:
- State personal values and beliefs;
- Explain the reasoning behind certain planning decisions;
- Preserve family stories, traditions, and lessons;
- Express love, appreciation, or forgiveness;
- Share your hopes for future generations.
As you can see, none of these are specifically quantifiable or legally enforceable, but they are all supremely valuable. For many families, a legacy letter becomes the most cherished component of both settling the affairs of the estate and retaining vivid memories of those who established and maintained the legacy.
How do you write a legacy letter?
First of all, keep in mind a legacy letter is not about achieving eloquence or perfection; it’s about authenticity. As you write, imagine you are sitting across from the people who will read the letter, communicating heart-to-heart. Reflect honestly on your life and experiences; mention the successes and sources of personal pride , but don’t gloss over the failures and disappointment. . What choices or decisions do you regret or wish you had done differently? What turned out better than you expected?
What qualities do you value most about the people closest to you? What do you hope they’ll learn or accomplish in the future? How do the terms of your estate planning support those hopes? What ideas or causes matter the most to you, and why? How have your life experiences shaped your commitments to family, to the community, to charity?
What if I’m just not a good writer?
A legacy letter can be in many different formats, depending on your comfort and ability levels. It can be handwritten, typed , a voice recording, or a video. Some might prefer a photo album or scrapbook, with notes explaining the significance of the images or other items included. The point is, it should feel authentic to you and clearly communicate to those who will receive it.
When should my legacy letter be delivered?
Some prefer the legacy letter be provided upon their passing, often as part of the estate planning process. Others may want to share it themselves at a keystone event like a major birthday, anniversary, or other family celebration. You may even want to create several different letters, intended for different people on different occasions (for example, a letter to be delivered to a grandchild upon their marriage).
Your legacy letter and your estate
Certainly, careful planning around the tangible aspects of your estate, such as the specific terms of your will or trust, estate tax minimization, powers of attorney, and other such matters is essential. But these are all concerned with the “what”: your legacy letter can be the clearest, most helpful determination of the “why” behind your planning.
GEM Asset Management is dedicated to helping clients achieve not only financial security, but also emotional satisfaction and communication of the values driving the financial journey. Let us help you gain clarity around your plans for those you care about the most.
How can I make philanthropy part of my family’s wealth strategy?
