Love is in the air.
Yep, that’s right, Cupid is flying around because Valentine’s Day is just around the corner.
And no, I’ve not taken leave of my senses, sending out a business message about love…
As a seasoned estate, succession, and life insurance planner, I’ve witnessed firsthand that, above all else, it is LOVE that drives peoples’ motivation to leave their families, business partners, employees, and customers with a positive legacy.
Our clients – regardless of age, gender, and single vs dual income earning – understand that legal, tax, insurance and financial plans need to be in place. As a young professional, I contemplated why some people procrastinated in these matters, some took an adequate path and still others embraced the planning process in a most effective and wonderful way.
After 35 years in this uniquely rewarding profession, I’ve come to realize that getting our clients across the finish line matters the most when it comes to completing a legacy plan. Often it is the simplest things that make the difference between a successful plan, an adequate plan and one that never gets launched.
This leads me to a Valentine’s tip, which is based on striking that vein of endearment within a person — then wrapping the plan up with a bow. I first heard of the following idea decades ago from a veteran estate planner in West Michigan named Lyle Morrisson. I took it to heart personally and I want to share it with you.
This Valentine’s Day – and every year after — I’m urging you to write an I Love You Letter.
If you are married or in a committed relationship, the first I Love You Letter you write should be to your special someone, and children too if applicable.
If you own a business, consider writing a form of an I Love You Missive to your management team, employees and customers.
Let me explain.
My intent is not to have you go down a dark path about mortality, morbidity, and such. Rather, the goal here is to demonstrate how much you care about those who depend on you and whose lives would not be the same without you. In doing so, perhaps you will motivate yourself to get off the dime and finally put your plan in place. If your plan is already in place, such a letter will provide game changing guidance to the most important people in your life while also showing them your devotion on Valentine’s Day.
Think of your I Love You Letter as a snapshot of your financial picture today and the reasons behind the decisions you’ve made as they relate to certain investments, bequeaths, healthcare provisions or charitable contributions. No matter the size of your estate, the recipient of your I Love You Letter will grasp your heartfelt concern for their future. It will give piece of mind to those who mean the most to you.
An I Love You Letter has even more impact when the inevitable occurs. It will lead the person(s) settling your estate – or stepping in on your behalf in the event of your incapacitation — through the process, step by step, using plain language. They will understand your mindset to provide context to the dry realities of your legal documents and all that pertains. Your letter may even save your family and company countless hours of hardship or misunderstanding.
Here’s a checklist to get you started – and remember, first and foremost, write from your heart as only you can. Consider including in your letter references about the following:
- The location of legal and financial documents such as financial statements, contracts, bank and social security statements, tax returns, birth and marriage certificates, divorce and citizenship papers, Social Security card, titles and/or deeds for any real estate properties, wills, trusts, healthcare power of attorney – and related passwords
- The names and contact information of any bankers, stockbrokers, insurance agents, attorneys, or other professionals who handle your assets
- If you have dependent children, the names of guardians and financial support to be provided
- Details about and contact information for all insurance coverage, especially life, disability, health and long-term care insurance
- The location of all safe deposit boxes and their keys
- Informal information regarding the dispersion of assets, such as who would get a sentimental possession or heirloom
- The whereabouts of tangible assets that are not readily accessible
- Preferred charities for pledges and donations, if they are expected
- Long-term care preferences and any preplanning – including contacts
- Funeral preferences and any preplanning – including contacts
- Instructions for the care and placement of any pets
- Your wishes about your digital footprint such as instructions for social media accounts
- And most importantly, how you feel about the recipient(s) and your wishes for their future
Let’s shift gears now to business matters.
If you own a business, an I Love You Missive can manifest in many forms. It is my experience that having an actual “letter,” although effective, is not as critical as simply being open and honest about your future plans for the enterprise. Strategies for its sale or continuation and communicating these thoughts to the appropriate audience are invaluable. Trust me on this, your partners, staff and customers all wonder, from time to time, what will become of them and the business if something happens to you!
Just as with our personal plans, successful business succession initiatives always require the legal and financial documents we all hear about — things like adequately funded Buy Sell Agreements, management continuity plans and solid mentoring programs to develop future leaders. But how much more effective are those things when the stakeholders truly know your mind and understand where they fit in over the long run? Make sure your management team, employees, suppliers, bankers, and customers all know what steps you are taking to secure their positions over the long haul should something happen to you. They will appreciate this immensely and will likely value your relationship even more after receiving the news.
In summary, the concept of an I Love You Letter can serve two priceless purposes:
1. Like a beautifully wrapped present, your heartfelt script puts voice to the why and how behind your estate plan and/or business succession plan.
2. Just the act of writing such a letter may cause you to pick up the phone and get started on that plan you have been putting off for way too long.
So this Valentine’s Day, when rushing out to buy flowers and chocolates or lining up a reservation at a favorite restaurant, remember: the potency of your I Love You Letter is a lasting gift that will be treasured not only this week, but forever.
If you’re having trouble getting started or you are finding gaps in your estate or business succession programs, give me a call. Regardless of your present career stage, we can help you in this critical area and we can add additional advisors if you have some gaps to fill in that area. Our success in the insurance business can be attributed to understanding relationships and motivations as much as the details of various policies and carriers.
I’ve been writing my wife a letter every year since 1984 and it’s been an evolution to say the least. It also serves as a check point for me to make sure that my affairs are up to date and current. The key is to just get started. Your letter next year will be better!
Valentine’s Day is my annual reminder to share with my family and business associates how much I care for them – and the steps I am taking for their future, no matter what may be in store for me.
As always, best wishes,
Andy