Legacy Planning Calculator — Plan Your Financial Legacy

Legacy Planning Calculator

Calculate your financial legacy, estimate inheritance values, tax implications, and plan distribution for beneficiaries. Ensure your assets are distributed according to your wishes.

Step 1: Assets & Liabilities

$500,000
$150,000
4%
20 years

Understanding Net Worth

Net worth = Total Assets – Total Liabilities. This forms the basis of your estate. Consider all assets: property, investments, retirement accounts, insurance policies, and personal property.

Step 2: Distribution & Tax Planning

17%
$12M
Spouse/Partner 50%
Children 30%
Charity 10%
Other 10%
Total: 100%

Tax Planning Considerations

Estate taxes vary by jurisdiction. Proper planning can minimize tax liability through trusts, gifting strategies, and charitable donations. Consult a financial advisor for personalized advice.

Legacy Planning Results

Legacy Summary
Beneficiary Distribution
Tax Analysis

Total Projected Legacy

$650,420
After 20 years at 4% growth
Current Net Worth
$350,000
Projected Estate Tax
$0
After-Tax Legacy
$650,420
Annual Growth
4%

Beneficiary Distribution

Beneficiary Percentage Amount Tax Implications

Distribution Notes

Spousal transfers typically have favorable tax treatment. Charitable donations may provide tax deductions. Consider establishing trusts for minor beneficiaries or those with special needs.

Tax Analysis

Estate Tax Calculation

Taxable Estate: Total Estate – Exemption Threshold
Tax Due: Taxable Estate × Estate Tax Rate
Example: $650,420 – $12,000,000 = $0 taxable (below threshold)

Strategies to Reduce Estate Tax

Annual Gifting: Gift up to annual exclusion amount tax-free
Charitable Trusts: Reduce estate while supporting causes
Life Insurance Trusts: Keep insurance proceeds out of taxable estate
Family Limited Partnerships: Transfer assets at discounted values

Jurisdiction-Specific Considerations

United States: Federal exemption $12.92M (2023), portability between spouses
United Kingdom: Nil-rate band £325,000, residence nil-rate band £175,000
Canada: No estate tax but deemed disposition on death
Australia: No estate tax at federal level, some state duties

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