Are you a senior, enjoying your golden years and reflecting on the legacy you will leave behind? Perhaps you're a Baby Boomer or Gen Xer navigating your own mid-life challenges and helping your aging parents plan for the future.
If any of this sounds familiar, legacy planning is for you.
“Preparing for those inevitable life occurrences, like the passing of a parent, a spouse, or yourself, are not happy topics, but they are extremely important and can have a huge impact on the lives of your family members and loved ones if they are not addressed,” said Cindy Shogry-Raimer, Greylock’s vice president and director of community development.
A gift for your loved ones
“When we say, ‘legacy planning,’ we basically mean how one’s valuables will be distributed when they pass,” said Connie Menin, a member service officer with Greylock Federal Credit Union. “I rarely use the term ‘estate planning,’ because people think that’s only for the really wealthy. I don’t care if you have $20 in your savings account or $20 million, legacy planning is extremely important.”
Legacy planning ensures that your wishes are honored and your loved ones are cared for.
The very first step everyone should take is to make sure the beneficiaries are accurate and up to date on all accounts – checking, saving, CD, 401(K), pension, investment accounts, and the like.
“I can’t speak for other institutions, but at Greylock, this is a pretty easy process,” said Menin. “Everyone on the account (owners and joint owners) simply needs to update and sign their member service agreements, which can be done in person at one of our branches or digitally using DocuSign. The credit union would need the beneficiary’s name, address, phone number, and date of birth. The beneficiaries will not have to sign anything.”
“I’ve helped a lot of people with legacy planning over the years,” said Menin. “It always gives them a real sense of peace. I often hear them say, ‘I don’t want my children to worry about what to do when I’m gone.’”
Legacy planning often involves creating a will, setting up trusts, and designating beneficiaries for assets such as bank accounts, retirement funds, and life insurance policies. Wills are especially helpful for non-financial assets, like homes, cars or other valuables. Trusts can be structured to reduce estate and gift taxes. Consulting with an estate planning attorney or financial advisor can provide valuable guidance on the best strategies to employ.
“Maybe you have been thinking about creating a trust or a will,” said Shogry-Raimer. “Make 2025 the year that you take care of your family and ensure that your wishes are communicated.”
Starting the conversation
For many, initiating a conversation about legacy planning with parents can be daunting.
“It may be a tough topic to bring up,” Menin added, “but it is the best way to make sure your parents’ wishes are respected.”
Just like having a beneficiary on your account, a joint owner eliminates probate, a legal process that can be both lengthy and costly in the wake of a loved one’s passing. Having a joint owner on your account also means there is someone who could pay bills and maintain your account if you become hospitalized or incapacitated. Please be aware that a joint owner always has full access to the funds, even when you are alive and well.
“It is important to be sure your joint owner is someone you really trust because while it doesn’t happen often, we’ve sadly seen cases where joint account holders abuse or empty accounts,” Menin added.
A lasting legacy
Designating beneficiaries ensures that assets go directly to the intended recipients. Without designated beneficiaries, assets may be distributed according to state laws, which might not align with one’s personal wishes. This can lead to unintended consequences and potential disputes among family members. This not only saves time and money but also provides privacy for the family.
“Ultimately, legacy planning is about ensuring that your family's values and wishes are honored,” Menin added. “It is a way to provide peace of mind for both parents and their children or loved ones.”
For more information, families are encouraged to consult with legal and financial professionals who can provide personalized advice and support.