Why You Need a Legacy Plan Before It’s Too Late

The death of a spouse is one of life’s most devastating events. The overwhelming sense of loss impacts every aspect of daily life: emotionally, mentally, and even physically. In addition to dealing with intense grief, the surviving spouse is often faced with a sudden wave of responsibilities. What was once shared between two people now falls entirely on one. The emotional emptiness can feel unbearable, and the practical demands only add to the turmoil, often leaving the surviving spouse feeling lost and helpless.

Beginning the healing process is essential to both emotional and physical health. While grief takes time, certain steps can help ease the transition. One of the most effective ways to prepare for such a life-changing event is through comprehensive financial planning. Additionally, creating a detailed legacy plan ensures that the transfer of assets can occur smoothly, outside the public eye of probate court, saving time, money, and emotional energy.

The first step in this process is building enough wealth to allow for legacy planning. However, wealth alone is not enough. It must be structured and clearly documented. A successful plan includes an organized summary of assets, liabilities, income sources, insurance policies, and any potential future income. All of this can be built into a detailed financial plan. The more thorough the documentation, the more efficient and effective the transition will be. Without this preparation, grieving spouses often find themselves burdened with the additional stress of locating financial information or navigating complex legal systems during an already difficult time.

Emotions can also cloud judgment, making it easy to act on impulse or bad advice. One misstep can quickly undo years of careful planning. As a person accumulates wealth, protecting that wealth and their family from these risks becomes increasingly important.

Long-term financial planning often falls on one partner in a marriage. Studies show that in 71% of households, one spouse serves as the primary decision-maker when it comes to finances. This leaves the other partner potentially unprepared and unfamiliar with important financial details. If the breadwinner passes away first, the surviving spouse may feel overwhelmed or disconnected from the financial strategy.

This is why including both spouses in financial planning is critical. Even if one person leads the process, the other should be informed and, ideally, have a relationship with the financial advisor. This helps provide continuity and comfort during times of loss. Still, nearly 70% of widows change financial advisors within the first year of losing their spouse, most often due to a lack of personal connection. Encouraging both partners to attend review meetings and engage with the advisor helps bridge this gap.

Legacy planning is more than a financial tool. It’s an act of love and care. With open communication, thoughtful planning, and trusted guidance, couples can better prepare for life’s most difficult moments and help ensure their family’s future is protected and respected.

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This document is for educational and informational purposes only and does not constitute an advertisement or solicitation of any securities or investment services provided Mainstay Capital Management, LLC (“MCM”). This document should not be construed as investment, tax, or legal advice, or a solicitation, or a recommendation to engage in any specific strategy. MCM is an independent investment adviser registered with U.S. Securities and Exchange Commission. MCM specializes in workplace savings plan portfolio management and retirement planning advice for active employees and retirees. This document was prepared by MCM primarily based on data collected and analyzed by MCM. The opinions expressed herein are those of MCM alone and are for background purposes only. MCM does not purport the analysis to be full or complete or to constitute investment advice and should not be relied on. In addition, certain information contained herein or utilized to draw the conclusions contained herein has been provided by, or obtained from, third party sources. While MCM believes that such sources are reliable, it cannot guarantee the accuracy of any such information and does not represent that such information is accurate or complete. All materials and information are provided “as is” without any express or implied warranties by MCM. MCM charges its fee based on a percentage of assets under management, which creates an incentive and conflict of interest to increase assets in that account. Furthermore, MCM has two different fee schedules, and therefore has a conflict of interest when assets or accounts move from the lower fee schedule to the higher fee schedule. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Consult your financial professional before making any investment decision. Please see MCM’s Form ADV Part 2A and Form CRS for additional information.