How a Physician Can Secure Their Legacy and Assets for Future Generations

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There’s a saying that defines the difference between being rich and being wealthy. In a nutshell, it explains that rich people have money while they’re alive, while wealthy people leave a legacy for generations after they’re gone.

Physicians comprise every role the Bureau of Labor and Statistics includes in its list of the top 20 highest-paying professions. From general internal medicine to surgeons, the medical career is lucrative.

No matter where you fit in this list, your career will place you in the category of “rich.” But what you do with that money determines whether you’ll be wealthy and leave a legacy behind you.

You must be proactive to secure your legacy and assets for future generations. Starting today, use these tips to turn your “rich” bank account into a “wealthy” generational heritage.

How a Physician Can Secure Their Legacy and Assets for Future Generations

1. Invest in Insurance

Most people understand the importance of life insurance in leaving their loved ones with a financial buffer, covering inheritance taxes, burial expenses, and short-term bills. Life insurance comes in various forms, including term, whole, and hybrid policies. Talk to your financial advisor and read this article by OJM Group to ensure your policy covers your goals.

But leaving a legacy means ensuring your lifetime assets are healthy enough to pass on to your beneficiaries without debts taking them away.

Malpractice insurance with a hefty policy limit is the first investment coverage. As a physician, you could be liable for millions of dollars in damages, which may exhaust your policy and bleed over into your debt. Umbrella insurance connects to this coverage, taking care of any overflow of a claim that is more than your malpractice insurance covers.

General liability is another crucial policy you’ll need, especially if you own a clinic. This insurance steps in should someone become injured on your property or should your property become damaged.

Consider adding disability insurance to your financial protective measures. Legacy builders understand that they’re not immune to accidents or illnesses and must still cover their expenses if they can’t work. This cost erodes your savings, detracting from any inheritance you want to leave behind. Disability insurance provides a percentage of your income, reducing the hit to your savings if you can’t work.

2. Begin an Asset Protection Trust

Doctors have the ongoing threat of malpractice lawsuits, no matter how thorough and careful they are. Although that’s what insurance is for, there’s always a chance that the claimant’s award may be greater than the policy or that other creditors or courts can claim your assets.

Once your finances are consistent and you’ve paid off debt, you’ll need a safe place to set aside your excess money. An asset protection trust secures your stocks, cash, real estate, and other assets from creditors or money judgments.

The assets listed within it are safe if the trust is established before any legal processes begin. More than one trustee buffers the protection against third parties, while a revocable trust gives you control of the assets until your death. The trust allows your beneficiaries to gain access to the property without going through probate.

3. Become a Legacy Planning Expert

When you decided to become a doctor, it didn’t happen passively. You researched the steps, set goals, and did the work. It took years, but you made it.

The same process applies to legacy planning. No one leaves generational wealth without learning what it entails.

Your financial advisor can assist you as you educate yourself on which investments to make and where to allocate your assets. Depending on your interests, you may want to make charitable contributions or set your descendants up for success by covering their education costs. Some people leave behind instructions and money to cover their pet’s needs.

Actively planning how your legacy will look when you’re gone is one way to solidify that your assets will go to things that are valuable to you. This careful setup prevents your wealth from becoming misused and disappearing.

Final Thoughts on How a Physician Can Secure Their Legacy and Assets for Future Generations

One guarantee in life is that we can’t take our wealth with us when we pass away. How will you plan for yours to be passed down after you’re gone? Building a legacy ensures your assets are utilized for causes you believe are important. Through careful planning, asset protection, and strategic trusts, you can leave behind wealth that will bless generations in your name.

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