WealthBT: Crafting a lasting legacy of values over valuables
In the intricate world of legacy planning, what does legacy mean to you? Is it merely wealth distribution between the generations or is there a deeper meaning to the term 'legacy'.
In the latest episode of WealthBT, a podcast of BT Correspondents by The Business Times, host Genevieve Cua conducts an insightful discussion with Christopher Tan, chief executive, Providend, for those seeking to understand how to leave a meaningful legacy.
Why legacy planning matters
People often consider legacy planning simply as the process of distributing assets to loved ones. However, as highlighted in this episode, legacy planning involves much more. It's about the lasting impact you wish to leave on your family and community. The podcast emphasises the need to reflect on what you want to be remembered for - beyond just material wealth.
Tan illustrates this by explaining that true legacy planning encompasses your beliefs and values, not just your financial assets.
Values and beliefs you want to pass on
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Both Cua and Tan agree that legacy planning is a continuous process that involves making daily life choices that align with your core values. Some practical steps include deciding what values and beliefs you want to pass on, who your beneficiaries will be, and how to manage potential issues that might arise in wealth distribution.
One of the episode's highlights is its detailed exploration of common mistakes in legacy planning. Tan points out issues such as providing too much too soon to children, which can create dependency and entitlement. Another mistake is the reluctance to talk openly about wealth with children, resulting in misunderstandings after parents pass away. In the podcast he makes some suggestions to avoid future conflicts.
Significance of a Letter of Wishes
A notable strategy discussed in the podcast is the use of a Letter of Wishes, which adds personal context and guidance to formal legal documents like wills and trusts. This letter can clarify the reasoning behind specific bequests and express the values you hope will guide future generations. Tan emphasises that this letter is crucial for helping trustees and executors make discretionary decisions aligned with your wishes.
The episode also covers how parents can prepare their children to inherit wealth responsibly. His recommendations in this part of the podcast is key listening for someone wanting to ensure understanding of intentions.
Listen now to the episode as it offers a comprehensive guide to thinking beyond financial assets. Addressing common pitfalls, offering insights into the importance of values in wealth transfer, and provides strategies to prepare the next generation.
WealthBT is a podcast of BT Correspondents. Look out for the next episode featuring correspondent Derryn Wong. And if you have any thoughts or questions, feel free to reach out to us at btpodcasts@sph.com.sg.
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Written and hosted by: Genevieve Cua (gen@sph.com.sg)
With Christopher Tan, chief executive officer, Providend
Edited by: Emily Liu & Claressa Monteiro
Produced by: Genevieve Cua, Emily Liu & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice.
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