By: AnnaMarie Mock, CFP®
Estate planning can be a morbid topic, and most want to avoid thinking about it. However, reviewing your estate documents not only ensures your financial legacy is passed in accordance with your legacy plan as smoothly as possible but guides your agent to address your medical and financial wishes.
But what about leaving more than just a financial legacy?
Ethical Will and Legacy Letters
An ethical will or legacy letter is designed to pass on principals, values, wishes, and memories to your descendants. Unlike the documents needed for a comprehensive estate plan, an ethical will is purely voluntary, not legally binding, and does not have to be executed by an attorney.
A legacy letter complements the last will & testament and can be read alongside to convey the legally binding document's decisions.
There is no set guideline to creating ethical wills and is based on what you want to impart to future generations. An ethical will can also be dynamic and modified over many years to capture your evolving life and thoughts. It can be as long or short as you like and depicted in any format - word, video, recordings, etc.
This letter may not be an easy thing to write because you must look inward to reflect upon a lifetime of successes, failures and identify what matters most.
7Experts have said that creating an ethical will can be a journey of self-discovery and contemplation upon your life's journey. The process can provide a sense of perspective as you review life lessons and create a deeper connection with your loved ones as you pass on wisdom.
The ethical will is the platform to express who you are, but if you need a roadmap, there are many templates available online. Here are some examples:
memories/ stories
your most challenging moments and how you overcame them?
your hopes for your family's and friends' future
morals, beliefs, and values you would like to pass on
items that are not financially valuable: photographs, recipes, family genealogy
You can undoubtedly mention information from the last will & testament in the ethical will to provide context. Still, the ethical will should not include new or differing instructions on asset disposition after your passing. Any differing information between the two documents may declare the last will & testament null and void by the probate court.
Generally, an ethical will is read after someone's passing; however, you may choose to share it with family during your lifetime to convey deep feelings easier to discuss through the written word. Sharing the ethical will during your lifetime may provide opportunities for dialogue and to draw your family closer during your lifetime. A copy should also be kept with your legal estate documents regardless if you distribute it while alive.
Author’s Bio
AnnaMarie Mock is a CERTIFIED FINANCIAL PLANNER™ and Partner at HIGHLAND Financial Advisors, LLC, a Fee-Only financial planning firm that offers comprehensive financial planning, retirement planning, employer retirement planning, and investment management. AnnaMarie graduated from Montclair State University with a degree in finance and management and successfully passed the CFP® national exam in 2016. She has been working at Highland Financial Advisors since 2013 as a fee-only, fiduciary Wealth Advisor and is a member of NAPFA.