Guarding Legacy & Leaving a Lasting Impact - Prince & Marilyn Monroe

We all strive to build a secure future for our families. We invest, save, and plan, hoping to leave a lasting legacy. But true wealth isn't just about the numbers; it's about living intentionally and ensuring our values and hard-earned assets benefit our loved ones for generations to come. This is the core mission of BetterWealth.com – making intentional living the new wealth standard – and it's a principle deeply intertwined with effective estate planning. While vastly different, Prince and Marilyn Monroe's stories offer valuable lessons about the critical importance of aligning your financial planning with your life's intentions.

Prince's estate, valued at a staggering $156.4 million after a long battle with the IRS, faced an estimated $84.24 million in estate taxes (combining federal and Minnesota state taxes). Marilyn Monroe's estate, while smaller, also encountered significant estate tax challenges exacerbated by a lack of clear planning. These cases, though high-profile, are not unique. They highlight many wealthy individuals' vulnerability: the potential for estate taxes to decimate the inheritance they intend to leave behind, undermining their intentional efforts to provide for their families.

One of the most significant issues facing heirs is liquidity. The IRS doesn't accept partial payments or offer extended payment plans in most cases. Estate taxes are typically due within nine months of the date of death. This short timeframe can put immense pressure on beneficiaries, especially when a large portion of the estate is tied up in illiquid assets like real estate, artwork, or, in Prince's case, a music catalog. This directly contradicts the idea of intentional living – leaving your heirs scrambling and stressed is likely not your intention.

Imagine trying to quickly sell a piece of fine art or complex business interest to generate millions of dollars within nine months. You're likely not going to get fair market value. Forced sales often result in significantly lower prices, further eroding the estate's value. This is where the problem of liquidity becomes painfully clear and where the importance of intentional planning shines.

Without readily available cash, heirs might be forced to sell assets at fire-sale prices, take out loans with high interest rates, or even lose control of family businesses or cherished possessions just to satisfy the IRS. This isn't just about the super-rich; even moderately wealthy individuals can face similar challenges if their estate isn't properly structured. This compromises the intentionality of your life's work.

So, how can you live intentionally and protect your family's wealth, ensuring your legacy endures according to your vision?

• Create a comprehensive estate plan: This includes a will or trust and potentially other tools like Irrevocable Life Insurance Trusts (ILITs). An ILIT, funded with a survivorship life insurance policy, can provide a tax-free death benefit precisely designed to cover estate taxes, ensuring your heirs have the liquidity they need. This allows your carefully cultivated assets to pass on as you intended.
• Assess your assets: Understand their liquidity. If a significant portion is tied up in illiquid holdings, explore strategies to create more liquidity within the estate. This aligns your financial reality with your intentional goals for your legacy.
• Work with qualified professionals: Consult an estate planning attorney, financial advisor, and tax professional. They can help you navigate the complexities of estate planning and develop a strategy tailored to your specific situation and intentions.
• Review and update your plan regularly: Life circumstances change, and tax laws evolve. Periodically reviewing and updating your estate plan is essential to ensure it remains effective and continues to reflect your intentional vision for your legacy.

Don't leave your family's future or the impact of your life's work to chance. By taking proactive steps to plan your estate, you can protect your legacy, spare your loved ones the financial burden and stress that can arise from inadequate planning, and distribute your assets according to your values and intentions. This is what BetterWealth.com is all about: living intentionally and building a wealth that reflects those intentions. Don't wait until it's too late. Start the conversation today.