Pop culture isn’t necessarily an accurate source of estate planning information. Still, in some cases, it can raise important issues. The Disney film “Encanto” was a smash hit among audiences. It also carries a few key lessons for people when it comes to planning for the future.
Among those lessons are:
Family legacy is important to your beneficiaries and beyond
- Multigenerational estate planning strategies are vital
- Tailoring an estate plan to the individual beneficiaries will benefit them most
- Choosing a fiduciary you can rely on
Who Benefits From Your Family Legacy?
“Encanto” focuses on the Madrigal family. The family received gifts in the form of a “miracle” that helped them survive and thrive after a tragedy. While the gifts went to Madrigal family members, an entire community flourished because of the way the Madrigals used their gifts.
Your family’s legacy can grow and spread in ways that are hard to predict. Your estate plan can be crafted in a way that maximizes the benefit to your family, the community, and the world as time passes. There are countless examples of families that have had a massive impact on more than just their descendants.
Creating a family foundation, such as the Bill & Melinda Gates Foundation or the Carnegie Foundation, is one way to start a legacy that can benefit family members and the community at large.
While it helps to have a billionaire at the center of philanthropic endeavors, it is not a requirement. Family foundations can be created from much smaller estates and still have a massive impact. They create a charitable organization that allows family members to participate and contribute to a common cause.
A family foundation is not the only way to secure your legacy and make a difference. Smaller moves still change lives. Your estate plan can help provide opportunities for individuals or the community as a whole. Charitable contributions can make your estate plan more meaningful for you and your family.
Multigenerational Estate Planning
Much of the story of “Encanto” focuses on Mirabel, the granddaughter of the original recipient of the miracle. The family matriarch, Abuela, cared about her children and her grandchildren in equal measure. The gifts they received and how they used those gifts mattered to Abuela.
Many estate plans consider only one generation. Parents plan for the benefit of their children. Some tools can make it easier to protect children, grandchildren, and generations beyond.
One popular tool is the 529 college savings plan. Trusts and family “banks” can give you a measure of control over how your assets are used to benefit the people who matter most.
Tailoring Your Plan to Each Beneficiary
The gifts in “Encanto” are not distributed equally. Some gifts are easier to use than others. Mirabel receives no gift. Bruno’s gift is considered a curse by most of his family. Both Bruno and Mirabel are treated as outsiders to a certain extent.
When making an estate plan, you may be forced to consider how to treat members of your family that don’t necessarily “fit in.” You may also need to consider family members who are facing challenges that others do not.
There are many ways to tailor your estate plan. Some tools, like special needs trusts, are designed for circumstances faced by many families. Others, like incentive trusts, can be used to encourage particular actions or behaviors for the benefit of a beneficiary.
Your loved ones are unique individuals. If your estate plan treats them all the same, there’s a chance you’ll miss out on an opportunity to make their lives better and maximize the power of your legacy.
Choosing a Fiduciary You Can Rely On
In “Encanto”, Mirabel’s sister Luisa has the gift of incredible strength. She can lift almost anything from a herd of donkeys to an entire church. Abuela places more and more on her shoulders as time passes. Eventually, the pressure becomes too great as Luisa is asked to give more than she can bear.
Parents often choose the oldest child, or the “responsible” child to serve in a fiduciary role. This may not be the wisest course. If this child is the one others will turn to at the death of a parent, he or she may already be under tremendous pressure.
Whenever possible, you should consider spreading the responsibility among more than one child. It also takes more than strength to serve as a trustee or agent. The right choice may not be the obvious choice. You should discuss who will handle these responsibilities with your estate planning attorney.
Estate Planning Advice When You Need It
It is never too early to think about your legacy. Whether it’s a major life event, or a Disney movie, anything that helps you think about how you want to approach the future is a good thing.
At the Law Office of Janet L. Brewer, clients get the experienced, thoughtful guidance they need. Call our office at 650-325-8276 to discuss your estate plan.
