In the grand big stage of computer architecture and systems from pioneers, who marked the beginning of the CMOS era, to the ones who are now driving its predictable ending, there are a few key graceful leaders who have, with scientific rigor, placed the work of and the grand final state of the vat, while setting the paradigms that guided practices through the predictable revolutionary transitions they and other technical gods have masterminded. The science of lasting legacies has not been widely recognized as formally scientific, and therefore is not being taught by ourselves and therefore is not believed or practiced by the current and coming generations. In this article, we overview the different lasting legacies recognized thus far and offer views on the science and art the leaders of the community should master in order to transform themselves into agents of lasting legacies as they envision foundations enabling current and future generations technical gods to define and apply attributes and principles that will continue benefiting the clients and the environment they serve.
The purpose of this column is to make students and junior professionals aware of the importance of legacy planning in the grand stage of computer architecture and systems. In particular, we expose the impact of scientific rigor with which our heroes extracted paradigms guiding current practices throughout the predictable transition between the CMOS era and beyond its end. We will overview what, in my opinion, are the most important permanent revolutionary contributions identified by which we will refer to our heroes as technical gods. Providing details on what my peers and I have in sight as foundational concepts and principles we need to consolidate, and a few of the unknowns we need to further assess stability and performance.
Understanding Legacy Planning
A solution could be to build a collection of resource materials that capture and impart upon future generations an understanding of how our values tie into and can advance charitable objectives and our family legacy. If people working with us rely on coaching others to handle gatherings and share key messages on our behalf, our thoughtfully crafted legacy plan can transition with the same grace, helping to keep a pulse on our guiding principles even as our family grows.
An example would be writing a book (or having a memoir written) that highlights one or more of our most esteemed values— kindness, love, or respect for oneself and others, advancement of education, helping children, or saving time or resources for others. These concepts are only slightly touched on in the context that your personal charitable gifting capacity can be increased within your estate plan, cost-efficient manner, and are often not discussed at all in legacy classes, likely due to the assumption that there is a perceived greater need for more money in order to accomplish this objective.
According to a study, 90 percent of individuals give to charity during their lives and of those, only 22 percent mention these gifts in their will or estate plans. Many see their gift as a private decision and do not perceive a need to inform others. Unfortunately, this is contrasted by the fact that the vast majority of long-term revenue for charitable organizations comes from the final wishes of supporters. Resulting from a survey completed by an initiative involving multiple organizations, individuals aged less than 28 years of age had no prior knowledge of legacy planning and only one in nine individuals aged 15-29 were undecided concerning whether or not to include a charity in their final wishes.
The outcome from planning what will be left with those close to us may very well be the intention to make a difference in the world during our lifetime and beyond if we are capable and willing to contemplate a world without us, or to set that stage in some way. We can take control of making this happen in a manner that supports our legacy almost immediately upon receiving professional guidance, as well as after executing solutions, as we will always have personal financial and estate planning in place.
Importance of Legacy Planning
Legacy planning practices are the most important influence on formal or sponsored charity efforts. In truth, good charity committee outcomes are more akin to strategic management and governance than any other business committee that gathers internally. Without a defined strategy, a company’s philanthropy effort is haphazard and dependent on the whims of the decision makers currently in charge, most notably because strategy is easier to stick to when leadership is constantly rotating. Employees are more likely to stay with a business that embodies strategic elements, one of which being a visible commitment to charitable efforts that are tied to meaningful outcomes. Once leaving roles within the company, employees’ choices are more profoundly and positively impacted through the example or mentorship of company leadership tied to strategic practices.
On the simplest level, strategic legacy planning accounts for everything a business leaves behind after it is dispensed, including business operations, products, public image, organizational culture, support systems, reputational value, and employee talent. On the highest level, it ensures that the nontaxable cash value associated with good business management and governance can be transferred to the next generation of leadership. When strategic legacy planning is well executed, advantageous organizational assets such as secure operations, brand equity, intellectual property, and employees’ reputational goodwill make the transition to next-generation leadership rich and success likely in a host of ways. Successful transitioning of leadership in the business world depends on more than just financial savviness, adept management skills, and strategic vision. Organizations that utilize strategic legacy planning are more prepared for a variety of technology and business shifts, more profitable, and have a better-supported workforce.
Benefits of Strategic Legacy Planning
The benefits of legacy planning are immense. It fosters inter- and intra-generational relationship. Since great leaders in any community often envision potentials not immediately perceivable by the common mind at a point in time, a leader desirous of leaving a good legacy will strive to see such potentials. This insight-driven vision instills confidence in the leader and his followers, earns the admiration of the community, presents an important guide for future development endeavors, and generally sustains or draws the confidence of business/development partners. Furthermore, the dispassionate consideration of a potential legacy prepares the successor of a leader for the office. The transfer of the vision to the successor is a transfer of essence, with the hope that the passion and exuberance of the new leader will bring about even greater accomplishments. This type of succession appears ideal, but highly challenging. Given the possibility of dynamics that could fuel a variation in the activities of any leader and a new leader, the vitality of inter-generational handoffs becomes the joint responsibility of the leader, his likely successor, and the community.
Strategic legacy planning is the act of ensuring that one – and all associated with him/her – will be celebrated long after he/she is gone, for an idea/a seed s/he sowed while alive and that outlived him/her. As a concept, this might not seem significant when other priorities are considered, but those who plan proactively for the time to leave are generally driven by the realization that we all will soon become history and that only a few will be remembered long after we become history. Strategic planning also considers the bearing that any effort or contribution ought to have on the self-professed interest.
Elements of a Successful Legacy Plan
Although there are many different ways to create financially supported demonstrations of leadership, the most successful examples are all stored securely in a sophisticated personal repository and are equipped with guiding operating beacons that redirect, renew and repurpose the financial, human and intellectual capital you have made manifest as driving legacy infrastructure. The personal repository we call “your personal due diligence notebook.” These types of ideas come in all sizes, shapes and forms. They take the form of graduates who did not become valedictorians. Participants who did not net the MVP awards. Members of senior management who did not achieve CEO appointments. Non-millionaires who become philanthropists upon their demises are people of every ilk and walk of life – individuals, families and members of financial families.
Legacy planning is simply about the part of life just beyond our demise – and that moment is the icing on the cake. A eulogy at that point is a nice touch but isn’t where the action is. A legacy planning cycle is as unique as you are because each of us has different desires, needs, family circumstances and hopes. There are thoughts about what kind of attention and care one of us might need to assure comfort – a whole roster of both personal and financial items to organize and handle – and always the tax man is involved. The vast majority of professional advice regarding wealth transfer planning is made up of legal and tax strategies that reduce or defer financial wealth transfer taxes. Compliant potential estate legacies include charitable and individual legacy giving along with family legacy giving – the uses of both financial and human (philanthropic or social) capital.
The ABC’s of Legacy Planning: Building Lasting Legacies, No Matter How Much Financial Capital You Have
Identifying Values and Goals
A great way to begin the process of identifying your core values is to think of three specific people you most admire or who inspire you. What is it about these people that you respect? Perhaps they exhibit qualities such as kindness, compassion, creativity or leadership? What other general sorts of qualities or guiding principles are important to you? Perhaps peace, justice, honesty, health, happiness, courage or wisdom? What things do you just enjoy doing? Spend a few minutes reflecting on your personal values: the principles or qualities that give your life meaning and guide your way. Then consider what types of values you most want to instill in others. When do you feel most satisfied, proud or alive? Once you have some ideas, discuss these with your family members, remembering that each of us have different values at different stages of our lives. If you like, you can write your values on individual slips of paper. Place them on a table. Try to organize them into three or four large categories of clustered related values. If you wish, you can then attempt to prioritize your categories of values by placing them in order of importance.
One of the first steps in any legacy planning process is to clarify values and goals. By values, we refer to those core principles, qualities or ideas that give meaning to your life, that might serve as a compass to guide your way. While values may reflect what we believe is important in the abstract, goals are the objectives that we wish to reach in service to our values. In any discussion about building a lasting legacy, it is important to start with a clear understanding of our guiding principles in life, our values, the essence of our unique selves.
Estate Planning and Asset Distribution
It is important to understand how your estate will be administered upon death. Without a valid will, the intentions of the deceased may be unattainable. For the vast majority, ensuring minor children, personal items, gifts to loved ones, and distribution and management of the residue of your estate is often overlooked. An executor may have to make these hard decisions and could go against what the testator would want. Decisions made by the executor will be decided through default legislation, benefiting their heirs rather than beneficiaries left in the will, leaving dependents in a situation of no control. If proper estate planning is not performed, asset distribution may not occur according to the wishes of the decedent, and certain assets may be held in trust. A disciplined will does not have to hold up direct distribution; additional planning and estate preservation can include equalization and charity beneficiaries. If the deceased died with no surviving dependents, and no will was done and appoint no beneficiaries, the escheat of their estate passes to the government.
Canada’s Wills Estates and Succession Act of 2015 states that a will refers to a testator’s testament and includes a codicil. A WESA, on the other hand, refers to a document made on a testamentary disposition and in the form of a will that deals only with the testamentary disposition. Testamentary disposition means the appointment of an executor and the gift of property that takes effect on the death of the testator. There are multiple “do-it-yourself” kits available today, and with over 18 million Canadian citizens unprepared for their death, this structure can provide a way to build your estate plan in 15 minutes online so you can create your will and power of attorney while being at ease in the comfort of your own home.
Philanthropy and Charitable Giving
Furthermore, it can lead to an increase in market share and sales. Indeed, consumers are more likely to buy from a company if it is associated with a good cause. The benefits of charitable giving are such that charitable organizations use individuals’ donations to motivate corporations to match those donations. Moreover, it can help to foster brand loyalty – making it less likely that customers will switch brands for which they have a strong emotional attachment. Finally, charitable giving can enhance employee satisfaction, pride, and altruism. In turn, this can positively impact employee loyalty, commitment, and morale. Beyond being a profitable, strategic option, charitable giving is an opportunity to build meaningful connections with potential clients and build brand reputation.
Deciding to give away money to charitable organizations can be very rewarding. Moreover, there are sound business reasons for engaging in charitable giving. That is because individual philanthropy and corporate philanthropy can demonstrate behavior supportive of broader goals, including but not limited to assistance for the needy. However, there are numerous other reasons for corporate giving, ranging from capturing government incentives to enhancing reputation or goodwill. Indeed, charitable giving can be exceptionally good for a brand or corporate reputation. It fosters better relationships with customers, employees, and their families, while associating a corporation with the charity’s positive image.
Implementing and Maintaining a Legacy Plan
Technically, you must ensure that all participants understand the methodology and can apply it consistently across your business. This also lessens interruptions and disruptions to your business as ongoing organization and process development are far less costly and faster to develop and implement. Begin capturing the relevant process to collaborate with your leadership team members, the Participating & Performing Criteria, and any findings from the periodic technical strategic and tactical changes you have added. This can involve you letting your non-technical team members flex their strategic muscles. For example, have different businesses evaluated the value of strategic objectives? These must focus on business initiatives, professionals, integrity, security, and so on. Keep in mind that until teams align on defined strategic goals, tactical day-to-day efforts will halt growth and forward progress, demanding one to limit strategic change to those that provide the most significant beneficial value to growing the business.
Strategically, you will need to review and adjust all or a part of your plan when faced with new initiatives, when your goals or those of the business change, or on a set schedule. A scheduled review ensures that your plan stays on course with your business lifecycle, that it remains relevant within current reconstructed frameworks and policies, and that it is consistent with current business objectives. For example, has significant time passed since you last reviewed the advisors, leadership team, or business direction? Have business objectives shifted or evolved? Strategically, the business decision-making is likely fostering advances in the IT revolution or reconsidering the acceleration of a significant competitive advantage. These business goals likely require a higher level of technology risk and should be monitored more closely. Tactical decisions may better align with business goals, and periodic technology and risk assessments should be aligned to those tactical efforts. Any technical strategic and tactical changes should be cataloged to maintain the work you have done to date.
You may be excited to implement your legacy plan, but some aspects of your plan may take time to put in place. Others may take time to maintain. Once your legacy plan is implemented, you also need to adjust it at times to respond to changes in your business or your life. Finally, you will want to take steps to ensure the ongoing implementation and continuity of your plan after you leave your business.
Working with Professionals
Within a highly focused team approach, wealth strategists are able to act within the bounds of their pushes to help you implement a well-coordinated legacy plan. With a good understanding of your objectives, goals, and risk considerations, a wealth strategist can develop a comprehensive plan that is responsive to the unique needs of your family over time. Be sure to let me know more about your planning needs, based on today’s relationship, specific investment strategies, investment vehicles (as the uncertainties and resistances for the success of future wealth transfer unique to your particular area), consider involving an attorney, tax professional, or other professional with experience in this field as well. This can set the framework for interaction between the many professional advisors necessary to help you reach your future financial objectives. By working with a multidisciplinary team through the process, wealth strategists are able to identify and mitigate legacy planning risks unique to the client and responsive to the specific long-term objectives and goals. Working with professional advisors, wealth strategists can also develop and implement an appropriate financial strategy that reflects net worth retirement needs and risk tolerance. The next step is comprised of developing a solution for accumulating funds specific to the income strategy. Wealth strategists are able to implement appropriate financial, risk management, and investment strategies that are responsive to the unique wealth transfer needs of a particular client, including long-term objectives, future family needs, and other concerns.
Working hand in hand with an attorney, accountant, or other skilled professional often results in the best strategy for many investors. Financial planners must be careful to avoid the unauthorized practice of law and should always be involved in professional financial planning. The first thing you can do is be sure all the members of your advisory team are aware of the important role that each of them plays in achieving your objectives. Let your wealth strategist know more about your financial goals while at the same time receiving input from the attorney regarding your financial and personal affairs, from personal finances, estate and gift planning opportunities to income tax-smart planning. Remember the advisor represented as our protector of your financial welfare are focused on working together to achieve the results for you – no one else.
Regular Review and Updates
Issues arising from the estate and the allocation of property can cause family disputes and conflicts. To avoid problems and ensure that family conflicts are not affected by inheritance divisions, it is important to have and prepare estate planning and legacy planning. Thirty of the best terminations are obtained by carefully planning and coordinating these aspects.
A significant contribution by movie legend Marlon Brando was his efforts to protect the interests of his heirs by transferring some of his multi-million-dollar homes to a trust. This was done so that his children could inherit the Roba Rosa ranch and Jackson Ranch houses and avoid lengthy legal challenges and family conflicts about ownership and property inheritance following his death. The legacy goals of Marlon Brando were planned and executed with the help of planners, financial advisors, and family members, to ensure that their wishes and family members were met. The results were uninterrupted and smooth property inheritance.
End of life decisions are those made by people to organize and arrange for aspects of their life and affairs for the time when they die. Such decisions are made to protect and safeguard the best interests of family and loved ones following death. End of life and incapacity planning is an important aspect of legacy and estate planning, as evidenced by the prominent figures who have faced longstanding legal challenges and family disputes.
Regular review and updates are essential to ensure the successful implementation of the legacy plan. The input and involvement of the heirs and other family members are crucial during this stage. Another legacy plan update can also be made if the family circumstances change, such as marriage, separation, divorce, and birth or death of family members. Inheritance structure changes need to be considered in such cases to avoid family disputes and rifts.
Communication and Family Involvement
This demonstrates the importance of trust-building relationships in family-company communication. Family members who enable the exchange of information increase family confidence and ability to reach a consensus on communication. There is a direct relationship between commitment to trust-based communication and conflict reduction. Reduced conflicts improve the business environment and bring improvements to the company’s results. Lastly, we highlight the importance of anxious trust development, defined as “confidence in the other, openness, commitment, capacity, understanding and positive intentions, as well as in the other’s competence, motivations and professional skills, ensuring predictability, reciprocity and emotional support in any family negotiation”.
For the transfer of business to be effective, honesty and transparency when the family is conducting business should become a rule within the family business relationships. It is also important to communicate the business objectives to the family members in order to promote the company’s success. Family members who devote some of their time to the company, especially in strategic tasks and occupy important positions, should be incentivized by using one or more financing mechanisms to ensure the transfer of furniture.
There are four communication paradigms that need to be in operation to have healthy communication in a family. They are: intrapersonal (communication on focus and reason for message); interpersonal (communication on the characters carrier and receiver of message); organizational (parts and roles when message is passed); mass communication (how message is passed, secret or confidential).
