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LA Wealth Management Blog

The Heart Behind Your Legacy: A Guide to Choosing Beneficiaries

Choosing beneficiaries isn’t just about dividing assets - it’s about shaping your legacy and ensuring the people you care about are taken care of in a way that reflects your values. It’s a deeply personal decision, and no two families approach it the same way. Selecting beneficiaries in a way that is both fair and equitable can be complex, especially when multiple people are involved. Here is a structured approach to help guide your decision:

1. Define What “Fair” and “Equitable” Mean to You

  • Fairness often means an equal division (e.g., splitting assets evenly among beneficiaries).

  • Equity considers individual needs, contributions, or circumstances, leading to a distribution that may not be equal but feels just. 

  • You can consider both of these values and strike the balance between honoring your own thoughts, feelings, and wishes.

2. Consider Financial Needs and Circumstances

  • Do some beneficiaries need more financial support than others (e.g., a child with a disability, an aging parent, or someone with significant debt)?

  • Have any of them received substantial financial help from you already?

3. Evaluate Contributions and Relationships

  • Has someone provided significant care, support, or sacrifice (e.g., an adult child who cared for you in old age)?

  • Did a family member contribute to your wealth (e.g., helping build a family business)?

4. Account for Tax Implications

  • Some assets, like pre-tax retirement accounts, come with tax burdens for the inheritor. You may want to balance this by giving tax-advantaged assets (like Roth IRAs or life insurance) to others. 

  • If leaving assets to minors or individuals with special needs, consider how it might impact their access to government benefits.

5. Use Different Types of Assets Strategically

  • Instead of splitting every asset equally, you can assign different assets based on their value and liquidity. For example, one person might inherit a home while another receives cash investments.

6. Communicate Your Intentions (if possible)

  • Clearly explaining your reasoning to beneficiaries ahead of time can prevent confusion, resentment or strained relationships.

  • A well-drafted estate plan with a letter of intent can clarify why decisions were made.

7. Consider a Trust for Complex Situations

  • A trust allows you to set terms for distributions, ensuring that funds are used wisely and according to your wishes.

  • This is particularly useful when some beneficiaries need financial oversight or ongoing support.

  • Trusts can serve your wishes for extended periods of time, at times reaching multiple generations.

8. Update Beneficiaries Regularly

  • Life changes such as marriages, divorces, or births, can shift what feels equitable. Review your estate plan periodically.


In conclusion, choosing beneficiaries, structuring your estate plan, reviewing it regularly, and openly communicating your intentions are all essential steps to work to ensure your legacy is  protected and your wishes are honored. Estate planning isn’t a one-time task—it evolves with your life circumstances, financial goals, and relationships. By taking a thoughtful approach and keeping your plan up to date, you can provide clarity for your loved ones, minimize potential conflicts, and create a lasting impact that aligns with your values.


Consult your team of trusted professionals—your financial advisor at LA Wealth Management, along with your tax advisor and estate planner—for professional guidance and support.



Disclosure(s): Securities and Advisory services offered through GWN Securities, Inc., Member FINRA/SIPC, a Registered Investment Advisor. 11440 N. Jog Road, Palm Beach Gardens, FL 33418. (561) 472-2700. LA Wealth Management and GWN Securities, Inc. are separate companies. Tax: Information provided should not be considered as tax advice from GWN Securities, Inc. or its representatives. Please consult with your tax professional. Roth: A distribution from a Roth IRA is tax-free and penalty-free provided that the five-year aging requirement has been satisfied and one of the following conditions is met: age 59 1/2, death, disability. CFP®: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP® in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.


Laurie Allen