Quiz: How Much Do You Really Know About Legacy Planning?

Know the facts so you're prepared to give all you can to your beneficiaries.

Over the next 30 years or so, Baby Boomers will likely transfer trillions to their heirs – one of the greatest intergenerational shifts of assets in history.

1 of 5:
Having a plan for passing down my assets is the same as having a will.

False. A will is just one element of a more comprehensive plan for how you'll pass your assets to your beneficiaries as efficiently as possible. A will names who your assets will be passed to, but may not necessarily include the details on how they'll be distributed.

2 of 5:
Strategies for transferring wealth are only for the very rich.

False. A wealth transfer strategy is simply a plan for how you'll pass your assets – no matter the size. A wisely crafted wealth transfer strategy can help alleviate unexpected tax consequences, complex legal situations and confusion for your beneficiaries.

3 of 5:
I can use the money from my required minimum distributions (RMDs) to fund things other than retirement expenses.

True. You must begin taking RMDs from your tax-deferred accounts once you're 70 ½, but that doesn't mean you're required to use that money only for retirement expenses. If you have enough to sustain your lifestyle without the income from your RMDs, you could use those funds to help fulfill other goals. For example: Use your RMDs to help pay for your child's or grandchild's education expenses.

4 of 5:
My beneficiaries are always required to pay income tax on any assets they receive from me.

False. One way to pass on a legacy that's income tax-free is to use your required minimum distributions (RMDs) to fund a life insurance benefit for your heirs (the death benefit passes to them income tax-free).

5 of 5:
The transfer of any assets to a charitable organization will not require the organization to pay income tax on the gift.

True. Charitable organizations don't have to pay income tax on any gifts you leave to them, which allows more of your legacy to be passed to the causes you care about.

Well done! What's next?

Ask yourself: How can I leave as much as possible to the people and organizations I love?

  • Have a plan for how you'll transfer your assets – regardless of how much or how little you have to pass along.
  • Be sure your plan is structured in a way that will have minimal tax impact, making it likely that more of your assets will go to the people and places you want.
  • Keep in mind: While a will names who your assets will be distributed to, it may not include the how – that's where a comprehensive transfer strategy comes into play.

Ready to go deeper with your strategy?

Our financial professionals have tools that can help you:

  • Explore insurance strategies that could help pass assets to next generations.
  • Identify opportunities to gift to charities and organizations.
  • Look for efficiencies that can help leverage your assets to leave a bigger legacy.

Consider partnering with an experienced Thrivent Financial professional today.1

Meet Brian

Brian retired a few years ago and is currently taking required minimum distributions (RMDs).

Thanks to faithful planning over the years, his living expenses are met and he's looking for ways to make the most of his RMDs – now disposable income for him.

He's also thinking about his legacy – the values and assets he wants to pass on after he's gone.

His family means the world to him and he wants them to benefit from what he's worked so hard to build during his lifetime.

While he wouldn't consider himself "rich" when it comes to the amount of money he has to pass down, he wants to give his kids and grandkids as much as he can.

Brian is also passionate about the needs in his community and wants the local food pantry he volunteers at weekly to continue serving generations to come.

He would love to see his assets provide for the food pantry and his family after he's gone, but isn't sure how to best make that happen so he can make the most of what he has.

Can you see yourself in this story?

Consider partnering with a Thrivent Financial professional who can help you create a plan to pass down all you can.1

We can help you sort through your questions and determine the most efficient way to leave the legacy you want.1

Still unsure if this type of planning is right for you?
Perhaps you can relate to Brian.

Meet Brian and take a look at his story

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