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Legacy planning represents a great opportunity to help Clients avoid intra-family conflicts, while potentially building inter-generational relationships.
Leaving a legacy means different things to different Clients. Some may want to be remembered for the memories they created with those around them when they were still alive; for example, the trip of a lifetime. Others might want to leave money, jewellery, paintings, artifacts, or other family heirlooms to loved ones, or a financial gift to a favourite charity.
Unfortunately, a legion of stories about battles over estates demonstrates the importance of clearly and properly documenting wishes. Here’s one example:
Deborah, a music major at university, practised on a Heintzman piano her grandfather had passed on to her father. She thought she would inherit the instrument. After her father died, his five children couldn’t find a will. Her brother Robert became estate administrator and insisted all belongings would be sold and split evenly among the children. Deborah offered to buy the piano from the estate. Robert gave her three months to come up with the money. Before the deadline, Robert sold the piano, claiming he received thousands more dollars than Deborah had offered. She sued her brother, settling in court for twice the amount she had originally offered to pay. The buyer of her father’s piano, however, refused to sell it.1
Legacy planning represents a great opportunity to help Clients avoid intra-family conflicts, while potentially building inter-generational relationships.
Les Kotzer, co-author of books about inheritance conflicts and how to avoid them, frequently discusses this issue on major media outlets. He offers clear and simple advice for Clients:
Discussing these issues with Clients can lead to a more efficient and friendly transfer of their wealth.
Start the conversation by asking how they want to be remembered. Do they volunteer for a charitable organization or plan to volunteer when they retire? They could leave a legacy to a cause they’re passionate about, by gifting life insurance or a life annuity.
If, on the other hand, they want to split their assets among children/grandchildren, do they want to give cherished items to the loved one most worthy of receiving them? To avoid potential conflicts, Clients could choose one of the following ways to communicate the contents of their will, before they die:
Using a workbook to capture all Clients’ assets can also be a great start to a legacy conversation. In the process of cataloguing items, you’ll be reviewing their insurance and investments, possibly discovering gaps in their legacy and financial planning that you could help fill.
By discussing their legacy, you’ll encourage Clients to reflect on what’s really important in their lives and provide a higher level of holistic advice.
Contact our Wealth Sales Team if you have any questions or want more information.
This article is not an endorsement by Sun Life Financial of the opinions and services of Les Kotzer. It’s important for Clients to hire an estate planning lawyer to create wills, appoint powers of attorney and executors, and handle inheritance matters.
1 Les Kotzer and Barry M. Fish, “The Piano,” Where there’s an inheritance…, Continental Atlantic Publications Inc., Toronto 2009, pages 27-31.
2 Les Kotzer and Barry M. Fish, “Your will: appointment of executors,” The family fight: Planning to avoid it, Continental Atlantic Publications Inc., Toronto 2006, pages 111, 112.
3 “Joint ownership: I should never have done it,” Where there’s an inheritance…, pages 104, 105.
4 Les Kotzer, Jordan M. Atin, and Barry M. Fish, “Some good news,” The Family War: Winning the Inheritance Battle, Continental Atlantic Publications Inc., Toronto 2006, page 137.
Sun Life Global Investments is a trade name of SLGI Asset Management Inc., Sun Life Assurance Company of Canada, and Sun Life Financial Trust Inc., all of which are members of the Sun Life group of companies.
SLGI Asset Management Inc. is the investment manager of the Sun Life family of mutual funds; Sun Life Assurance Company of Canada is the issuer of guaranteed insurance contracts including Annuities, and Segregated Funds. Sun Life Financial Trust Inc. is the issuer of Guaranteed Investment Certificates.
