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Living Legacy

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Living Legacy

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    1. Living Legacy Discovering what’s really important. (Welcome, introductions, announcements, etc.) “Living Legacy – Discovering what’s really important.” This seminar came about as a result of some significant changes occurring in our population. For example . . . (Welcome, introductions, announcements, etc.) “Living Legacy – Discovering what’s really important.” This seminar came about as a result of some significant changes occurring in our population. For example . . .

    2. © Copyright Allianz ENT200 02/2006 Living Legacy 2 of 58 Did you know? Did you know? The AGE WAVE is here! Are you a part of it? Did you know? The AGE WAVE is here! Are you a part of it?

    3. © Copyright Allianz ENT200 02/2006 Living Legacy 3 of 58 The Age Wave is Here. Are you in it? People over the age of 55 (which includes most baby boomers and their parents) make up a growing majority of the US population. Our society, which used to be largely a “youth culture”, is now becoming a population of older people. And did you know? Life expectancy continues to increase.People over the age of 55 (which includes most baby boomers and their parents) make up a growing majority of the US population. Our society, which used to be largely a “youth culture”, is now becoming a population of older people. And did you know? Life expectancy continues to increase.

    4. © Copyright Allianz ENT200 02/2006 Living Legacy 4 of 58 Life Expectancy at Birth 1,000 years ago, life expectancy at birth was 20 years old. At the beginning of the 20th century, the average life expectancy at birth was 47 years. And at the end of the 20th century, the average life expectancy was approximately 77 years. What’s the future outlook for life expectancy? 1,000 years ago, life expectancy at birth was 20 years old. At the beginning of the 20th century, the average life expectancy at birth was 47 years. And at the end of the 20th century, the average life expectancy was approximately 77 years. What’s the future outlook for life expectancy?

    5. © Copyright Allianz ENT200 02/2006 Living Legacy 5 of 58 Average Life Expectancy For those who are age 65 now, average life expectancy by the year 2025 could be as high as 87 years for men and 90 years for women. And this assumes no further breakthroughs in medicine or science. And did you know? References to our older adult population being “poor” are inaccurate? As a matter of fact…. For those who are age 65 now, average life expectancy by the year 2025 could be as high as 87 years for men and 90 years for women. And this assumes no further breakthroughs in medicine or science. And did you know? References to our older adult population being “poor” are inaccurate? As a matter of fact….

    6. © Copyright Allianz ENT200 02/2006 Living Legacy 6 of 58 What Does All This Mean? Aging population-maybe even you! Increasing life expectancy-you are taking better care of yourself There’s a lot at stake for a lot of people in the coming years-keeping up with inflation and all the things you want to do when you retire What does all this mean? We’ve got an aging population, increasing life expectancy, and a lot at stake for a lot of people in the coming years. What does all this mean? We’ve got an aging population, increasing life expectancy, and a lot at stake for a lot of people in the coming years.

    7. © Copyright Allianz ENT200 02/2006 Living Legacy 7 of 58 Serving the needs of an aging population As a financial services professional, I was naturally interested in learning more about these trends, the impact on my clients, and how I can better serve their needs. I was pleased to find a wealth of new insights on this topic from a recent study commissioned by Allianz Life.As a financial services professional, I was naturally interested in learning more about these trends, the impact on my clients, and how I can better serve their needs. I was pleased to find a wealth of new insights on this topic from a recent study commissioned by Allianz Life.

    8. © Copyright Allianz ENT200 02/2006 Living Legacy 8 of 58 The Allianz American Legacies Study Most comprehensive study of intergenerational wealth transfer ever conducted Study designed by Ken Dychtwald, PhD, President of Age Wave. Survey conducted by Harris Interactive® National study of baby boomers (ages 40 – 59) and parents of baby boomers (ages 65 and over) The Allianz American Legacies Study is the most comprehensive study of intergenerational wealth transfer ever conducted. Allianz Life partnered with Ken Dychtwald, PhD, President of Age Wave to develop the study, and with Harris Interactive® to conduct the survey. The survey included a random sampling of baby boomers (ages 40 – 59) and parents of baby boomers (ages 65 and over). These baby boomers and their parents were surveyed about how they define leaving a legacy and how their families were communicating about these important and often sensitive issues. The results offers an in-depth look at families’ expectations about inheritance and legacy. The key findings from this study are the foundation for this seminar. The Allianz American Legacies Study is the most comprehensive study of intergenerational wealth transfer ever conducted. Allianz Life partnered with Ken Dychtwald, PhD, President of Age Wave to develop the study, and with Harris Interactive® to conduct the survey. The survey included a random sampling of baby boomers (ages 40 – 59) and parents of baby boomers (ages 65 and over). These baby boomers and their parents were surveyed about how they define leaving a legacy and how their families were communicating about these important and often sensitive issues. The results offers an in-depth look at families’ expectations about inheritance and legacy. The key findings from this study are the foundation for this seminar.

    9. © Copyright Allianz ENT200 02/2006 Living Legacy 9 of 58 Living Legacy Seminar Objectives Introduce the concept of a “living legacy” – which is available to anyone! Consider how the key findings from The Allianz American Legacies Study may apply to you and your family Learn how to discover what’s really important in your family as you make living legacy decisions Here are the objectives for our “Living Legacy” seminar: First, we’ll introduce the concept of a “living legacy” which is available to anyone. Then, you’ll have the opportunity to consider how some of the key findings from The Allianz American Legacies Study apply to you and your family. And finally, we’ll provide some tips for the process of discovering what’s really important in your family as you make living legacy decisions. For those of you who decide to pursue a “living legacy” beyond today’s seminar, I have several tools available to help with that process. Here are the objectives for our “Living Legacy” seminar: First, we’ll introduce the concept of a “living legacy” which is available to anyone. Then, you’ll have the opportunity to consider how some of the key findings from The Allianz American Legacies Study apply to you and your family. And finally, we’ll provide some tips for the process of discovering what’s really important in your family as you make living legacy decisions. For those of you who decide to pursue a “living legacy” beyond today’s seminar, I have several tools available to help with that process.

    10. © Copyright Allianz ENT200 02/2006 Living Legacy 10 of 58 Living Legacy Discovery Journal In order to help you get the most out of this seminar, we’ve included some optional participant activities. That’s why we’ve provided each of you with a Living Legacy Discovery Journal. As we go through this information, I encourage you to make note of any insights you gain that may be useful to you and your family. These could be ideas, questions, or even concerns. There are some key points in the seminar where we’ll stop and allow some time for discussion and notes on particular topics. There is also plenty of space for any other notes you wish to take. All of this is strictly optional. No one will be put on the spot. I’m glad you’re here to learn more on this important topic, so let’s get started In order to help you get the most out of this seminar, we’ve included some optional participant activities. That’s why we’ve provided each of you with a Living Legacy Discovery Journal. As we go through this information, I encourage you to make note of any insights you gain that may be useful to you and your family. These could be ideas, questions, or even concerns. There are some key points in the seminar where we’ll stop and allow some time for discussion and notes on particular topics. There is also plenty of space for any other notes you wish to take. All of this is strictly optional. No one will be put on the spot. I’m glad you’re here to learn more on this important topic, so let’s get started

    11. © Copyright Allianz ENT200 02/2006 Living Legacy 11 of 58 Discovering what’s really important The subtitle of this Living Legacy Seminar is “discovering what’s really important”, so let’s start with a little grown up version of “show and tell”. When you were invited to the seminar, we asked you to bring something (or at least have something in mind) that you feel is really important in your family. Would anyone like to share those thoughts with the group? (In case participants are not open to sharing, presenter should be prepared to share their own item/thoughts and/or some items/thoughts that might be typical examples. Attempt to demonstrate the variety of things people view as important.)The subtitle of this Living Legacy Seminar is “discovering what’s really important”, so let’s start with a little grown up version of “show and tell”. When you were invited to the seminar, we asked you to bring something (or at least have something in mind) that you feel is really important in your family. Would anyone like to share those thoughts with the group? (In case participants are not open to sharing, presenter should be prepared to share their own item/thoughts and/or some items/thoughts that might be typical examples. Attempt to demonstrate the variety of things people view as important.)

    12. © Copyright Allianz ENT200 02/2006 Living Legacy 12 of 58 Legacy Legacy. What’s the first thing that comes to mind when you hear this word? Inheritance? Estate planning? Wills? All of those things are certainly a part of a person’s legacy. The dictionary defines “legacy” more generally, as: something transmitted by or received from an ancestor. That could include more than financial matters. Legacy. What’s the first thing that comes to mind when you hear this word? Inheritance? Estate planning? Wills? All of those things are certainly a part of a person’s legacy. The dictionary defines “legacy” more generally, as: something transmitted by or received from an ancestor. That could include more than financial matters.

    13. © Copyright Allianz ENT200 02/2006 Living Legacy 13 of 58 Living Legacy And so does this seminar, which is why we’re using the term “living legacy”. We’ll go beyond the financial aspects of legacy, with information, ideas, and tools to help you and your family discover and plan for what’s really important. (If possible – relate the “more than money” concept to the things participants referenced in the “show and tell” activity.) And so does this seminar, which is why we’re using the term “living legacy”. We’ll go beyond the financial aspects of legacy, with information, ideas, and tools to help you and your family discover and plan for what’s really important. (If possible – relate the “more than money” concept to the things participants referenced in the “show and tell” activity.)

    14. © Copyright Allianz ENT200 02/2006 Living Legacy 14 of 58 Allianz American Legacies Study: Key Findings Now let’s take a look at some of the key findings from the Allianz American Legacies study. Any guesses about which issues rose to the top? (Invite responses.) If I were to summarize the key findings in one word, it would be . . . Now let’s take a look at some of the key findings from the Allianz American Legacies study. Any guesses about which issues rose to the top? (Invite responses.) If I were to summarize the key findings in one word, it would be . . .

    15. © Copyright Allianz ENT200 02/2006 Living Legacy 15 of 58 Gaps Gaps. “Gaps” emerged as a common theme throughout this study. Since most of you were either raising children or being raised during the 1960’s, this may bring back memories of “the generation gap”, a term coined during that decade to describe the differing views between parents and their children. Gaps. “Gaps” emerged as a common theme throughout this study. Since most of you were either raising children or being raised during the 1960’s, this may bring back memories of “the generation gap”, a term coined during that decade to describe the differing views between parents and their children.

    16. © Copyright Allianz ENT200 02/2006 Living Legacy 16 of 58 Generation Gap And here it is again - with presumably different issues. Let’s see how this version of a “generation gap”, combined with a “communication gap” can lead to a potential “Legacy Gap” in families. And here it is again - with presumably different issues. Let’s see how this version of a “generation gap”, combined with a “communication gap” can lead to a potential “Legacy Gap” in families.

    17. © Copyright Allianz ENT200 02/2006 Living Legacy 17 of 58 Generation Gap There are significant gaps in what the baby boomers’ generation and their parents’ generation expect from and define as “inheritance” Do you have a generation gap? The Allianz American Legacies Study found significant gaps in what the boomers’ generation and their parents’ generation expect from and define as “inheritance”. Do you have a generation gap in your family? When was the last time you had a family discussion? In many cases, this is a difference of perceptions and assumptions about “what’s most important”. Take a look. The Allianz American Legacies Study found significant gaps in what the boomers’ generation and their parents’ generation expect from and define as “inheritance”. Do you have a generation gap in your family? When was the last time you had a family discussion? In many cases, this is a difference of perceptions and assumptions about “what’s most important”. Take a look.

    18. © Copyright Allianz ENT200 02/2006 Living Legacy 18 of 58 How important is it for you personally that you receive/provide any of the following as an inheritance? Survey participants were asked: How important is it for you personally that you receive/provide any of the following as an inheritance. And here are the results. Values & Life Lessons are a shared priority and they are also the most important to both Boomers and Elders. (Maybe the best things in life really ARE free.) Boomers want to know more about Instructions & Wishes to Be Fulfilled than Elders think they do. Elders tend to put more emphasis on Financial Assets or Real Estate than Boomers do. The generation gap still exists. Survey participants were asked: How important is it for you personally that you receive/provide any of the following as an inheritance. And here are the results. Values & Life Lessons are a shared priority and they are also the most important to both Boomers and Elders. (Maybe the best things in life really ARE free.) Boomers want to know more about Instructions & Wishes to Be Fulfilled than Elders think they do. Elders tend to put more emphasis on Financial Assets or Real Estate than Boomers do. The generation gap still exists.

    19. © Copyright Allianz ENT200 02/2006 Living Legacy 19 of 58 Discovery Journal. How does this issue fit you and your family. Take a minute to consider what you’d rate as “most important”, then consider how you THINK other family members would respond. Discovery Journal. How does this issue fit you and your family. Take a minute to consider what you’d rate as “most important”, then consider how you THINK other family members would respond.

    20. © Copyright Allianz ENT200 02/2006 Living Legacy 20 of 58 Communication Gap Baby boomers and their parents are not having in-depth conversations about legacy and inheritance that lead to meaningful and productive communication Furthermore, the study found that baby boomers and their parents are not having in-depth conversations that lead to meaningful and productive communication about legacy and inheritance (even though most of them say they’ve discussed it). Take a look. Furthermore, the study found that baby boomers and their parents are not having in-depth conversations that lead to meaningful and productive communication about legacy and inheritance (even though most of them say they’ve discussed it). Take a look.

    21. © Copyright Allianz ENT200 02/2006 Living Legacy 21 of 58 Have you had an in-depth discussion with your parents/ children or heirs about the distribution of the following? (% have discussed) When survey participants were asked: Have you had an in-depth discussion with your parents/children or heirs about the distribution of the following . . . Less than a third of those surveyed reported having talked about all Four Pillars of Legacy. Both Boomers and Elders report being more likely to have discussed Values & Life Lessons and Financial Assets or Real Estate than Personal Possessions of Emotional Value or Instructions & Wishes to Be Fulfilled. While many baby boomers and their parents speak about the importance of discussing legacy plans, the study finds that less than one-third of boomers and their parents have had a thorough discussion al all aspects of legacy planning. When survey participants were asked: Have you had an in-depth discussion with your parents/children or heirs about the distribution of the following . . . Less than a third of those surveyed reported having talked about all Four Pillars of Legacy. Both Boomers and Elders report being more likely to have discussed Values & Life Lessons and Financial Assets or Real Estate than Personal Possessions of Emotional Value or Instructions & Wishes to Be Fulfilled. While many baby boomers and their parents speak about the importance of discussing legacy plans, the study finds that less than one-third of boomers and their parents have had a thorough discussion al all aspects of legacy planning.

    22. © Copyright Allianz ENT200 02/2006 Living Legacy 22 of 58 What about you and your family? How would you respond to this question and how do you think other family members would respond. What about you and your family? How would you respond to this question and how do you think other family members would respond.

    23. © Copyright Allianz ENT200 02/2006 Living Legacy 23 of 58 Legacy Gap The differing views of baby boomers and their parents (generation gap) combined with lack of meaningful discussion (communication gap) about the full scope of issues relating to legacy planning results in a legacy gap. The differing views of baby boomers and their parents (a generation gap) combined with a lack of meaningful discussion about the full scope of issues relating to legacy planning (a communication gap) results in a legacy gap. The differing views of baby boomers and their parents (a generation gap) combined with a lack of meaningful discussion about the full scope of issues relating to legacy planning (a communication gap) results in a legacy gap.

    24. © Copyright Allianz ENT200 02/2006 Living Legacy 24 of 58 Look who’s NOT talking now What’s important to know is what you are thinking and feeling is no different from those in the study. A majority of baby boomers and their parents are NOT talking in enough detail about the full range of topics that make up a living legacy. What’s important from this study is what you are thinking and feeling is no different than those in the study. A majority of baby boomers and their parents are NOT talking in enough detail about the full range of topics that make up a living legacy. What’s important from this study is what you are thinking and feeling is no different than those in the study.

    25. © Copyright Allianz ENT200 02/2006 Living Legacy 25 of 58 How can families bridge the legacy gap? How can families bridge the legacy gap? The answer seems pretty simple. But the reality of having those conversations, may be more complex. How can families bridge the legacy gap? The answer seems pretty simple. But the reality of having those conversations, may be more complex.

    26. © Copyright Allianz ENT200 02/2006 Living Legacy 26 of 58 Why don’t we talk about Legacy? Discomfort with “death” and “inheritance” Fear of conflict among family members Uncertainty over issues of fairness So…why don’t we talk about Legacy? Discomfort with discussions on topics that relate to “death” and “inheritance”. Fear of conflict among family members. If conflict already exists, there’s a natural fear that these discussions could make it worse. And if it doesn’t exist (or doesn’t seem to), there may be a fear that talking about sensitive topics could initiate conflict. Uncertainty over issues of “fairness”. While some people may feel that “fair” means “equal”; others might believe that “equal” would not be “fair”. So…why don’t we talk about Legacy? Discomfort with discussions on topics that relate to “death” and “inheritance”. Fear of conflict among family members. If conflict already exists, there’s a natural fear that these discussions could make it worse. And if it doesn’t exist (or doesn’t seem to), there may be a fear that talking about sensitive topics could initiate conflict. Uncertainty over issues of “fairness”. While some people may feel that “fair” means “equal”; others might believe that “equal” would not be “fair”.

    27. © Copyright Allianz ENT200 02/2006 Living Legacy 27 of 58 These fear factors are listed in your discovery journal. Take a minute to consider which ones – if any apply to your family and rate them accordingly. (Use a “circle one” response to rate how much of an issue each might be to discussing and deciding.)These fear factors are listed in your discovery journal. Take a minute to consider which ones – if any apply to your family and rate them accordingly. (Use a “circle one” response to rate how much of an issue each might be to discussing and deciding.)

    28. © Copyright Allianz ENT200 02/2006 Living Legacy 28 of 58 Personal discomfort with the topics of inheritance and death are the biggest barriers to discussion. Boomers are more uncomfortable discussing inheritance According to the survey results, personal discomfort with the topics of inheritance and death is the biggest barriers to discussion. Boomers are more uncomfortable discussing inheritance. Elders fear talk about death would upset children. The surprising result here is that Boomers are more uncomfortable talking about inheritance than are their parents. Notice the gap between boomers and their parents as they assume – often incorrectly – what the other is thinking and feeling on the subject.According to the survey results, personal discomfort with the topics of inheritance and death is the biggest barriers to discussion. Boomers are more uncomfortable discussing inheritance. Elders fear talk about death would upset children. The surprising result here is that Boomers are more uncomfortable talking about inheritance than are their parents. Notice the gap between boomers and their parents as they assume – often incorrectly – what the other is thinking and feeling on the subject.

    29. © Copyright Allianz ENT200 02/2006 Living Legacy 29 of 58 Fear of conflict among family members Fear of conflict among family members. Some family conflicts may be directly related to legacy topics. Other issues – seemingly unrelated to legacy topics – may also have a bearing on these discussions. Guess what the number one source of conflict is among families in terms of legacy and inheritance as it was identified in the survey results? Fear of conflict among family members. Some family conflicts may be directly related to legacy topics. Other issues – seemingly unrelated to legacy topics – may also have a bearing on these discussions. Guess what the number one source of conflict is among families in terms of legacy and inheritance as it was identified in the survey results?

    30. © Copyright Allianz ENT200 02/2006 Living Legacy 30 of 58 Which one of the following was the greatest source of conflict in the transfer of your parents’ inheritance & legacy? Surprisingly, the subject of the most conflict is not money as we might expect, but related to fulfilling last wishes and the distribution of personal possessions. Conflict is five times more likely to arise from last wishes or personal possessions than from money. Surprisingly, the subject of the most conflict is not money as we might expect, but related to fulfilling last wishes and the distribution of personal possessions. Conflict is five times more likely to arise from last wishes or personal possessions than from money.

    31. © Copyright Allianz ENT200 02/2006 Living Legacy 31 of 58 Uncertainty over issues of fairness Uncertainty over issues of fairness.Uncertainty over issues of fairness.

    32. © Copyright Allianz ENT200 02/2006 Living Legacy 32 of 58 Every child has a right to share equally in the inheritance of a parent (% agree) While most Elders say they ultimately plan to distribute their inheritance equally among their children, many—especially those with higher net worth—would say their inheritance should be earned. This is called “performance-based distribution” when parents decide what each child will receive based on something other than an equal division of assets. While most Elders say they ultimately plan to distribute their inheritance equally among their children, many—especially those with higher net worth—would say their inheritance should be earned. This is called “performance-based distribution” when parents decide what each child will receive based on something other than an equal division of assets.

    33. © Copyright Allianz ENT200 02/2006 Living Legacy 33 of 58 Children deserve more if they provide care, less if they cause conflict For example, in looking at the results of the survey . . . Most say a child deserves a larger inheritance if they provide care for a parent. Many also agree that children who have greater financial need deserve a larger inheritance. On the flip side, many think children deserve less if they cause conflict or disrespect the family. For example, in looking at the results of the survey . . . Most say a child deserves a larger inheritance if they provide care for a parent. Many also agree that children who have greater financial need deserve a larger inheritance. On the flip side, many think children deserve less if they cause conflict or disrespect the family.

    34. © Copyright Allianz ENT200 02/2006 Living Legacy 34 of 58 Let’s be Fair What’s fair – “equal” or “equitable”? Communication is key Parents and children may agree that the distribution of their parents’ financial assets should be “fair”, but they may disagree as to whether fair means “equal” or “equitable”? There is certainly not one “right” answer for every family about what’s fair in distributing assets. The important point is, again, “communication” to help avoid bigger conflicts and misunderstandings later on. Parents and children may agree that the distribution of their parents’ financial assets should be “fair”, but they may disagree as to whether fair means “equal” or “equitable”? There is certainly not one “right” answer for every family about what’s fair in distributing assets. The important point is, again, “communication” to help avoid bigger conflicts and misunderstandings later on.

    35. © Copyright Allianz ENT200 02/2006 Living Legacy 35 of 58 What’s the one issue that you’re most concerned about in the process of discussing legacy issues with your family? Note that in your journal. (Presenter might offer an example or two and – if group seems open at this point – invite general sharing of responses.)What’s the one issue that you’re most concerned about in the process of discussing legacy issues with your family? Note that in your journal. (Presenter might offer an example or two and – if group seems open at this point – invite general sharing of responses.)

    36. © Copyright Allianz ENT200 02/2006 Living Legacy 36 of 58 Rethinking the “fear factors” Most every family has their own “issues” in one form or another, so we can probably all understand why the desire to avoid sensitive or hot topics makes it easy to postpone or avoid some of the conversations that deal with legacy. No one can guarantee conflict-free communication. There are, however, some things that can help to ensure a process for discussing and deciding that is likely to be more effective and more satisfying overall. And it starts with . . . Most every family has their own “issues” in one form or another, so we can probably all understand why the desire to avoid sensitive or hot topics makes it easy to postpone or avoid some of the conversations that deal with legacy. No one can guarantee conflict-free communication. There are, however, some things that can help to ensure a process for discussing and deciding that is likely to be more effective and more satisfying overall. And it starts with . . .

    37. © Copyright Allianz ENT200 02/2006 Living Legacy 37 of 58 Put “Fears” into Perspective: Postponing uncomfortable discussions does not eliminate the need to deal with the issues sooner or later Fears and concerns may prove to be exaggerated or unfounded Family members in conflict may welcome the opportunity for discussion and resolution Avoiding the potential for conflict now may result in greater conflict later Putting “fears” into perspective. Postponing uncomfortable discussions, doesn’t eliminate the need to deal with the issues sooner or later. And since “death” is inevitable, it’s unlikely that delaying the discussions will make them any easier. You may find that your fears were exaggerated or unfounded as some of what you anticipate may never occur. (Human nature often prompts us to “fear the worst” whether warranted or not.) You may find that while you accurately anticipated areas of conflict, other family members are actually relieved to finally get these issues out in the open and work toward some kind of resolution. In the event that conflict does arise and is not so easily resolved, remember that avoiding it while parents are still living is essentially just postponing it until their deaths. At that point, unresolved issues needing to be decided at a time that is already emotionally charged may be a recipe for even greater conflict. And remember, it may not be possible to make living legacy decisions that satisfy everyone. Even so – when parents’ wishes are clearly defined and explained in advance, it does eliminate future debates over “what mom and dad would have wanted done”. The biggest mistake overall is avoiding discussions for fear of what “might” happen. (Remember – lack of communication IS the problem.) Putting “fears” into perspective. Postponing uncomfortable discussions, doesn’t eliminate the need to deal with the issues sooner or later. And since “death” is inevitable, it’s unlikely that delaying the discussions will make them any easier. You may find that your fears were exaggerated or unfounded as some of what you anticipate may never occur. (Human nature often prompts us to “fear the worst” whether warranted or not.) You may find that while you accurately anticipated areas of conflict, other family members are actually relieved to finally get these issues out in the open and work toward some kind of resolution. In the event that conflict does arise and is not so easily resolved, remember that avoiding it while parents are still living is essentially just postponing it until their deaths. At that point, unresolved issues needing to be decided at a time that is already emotionally charged may be a recipe for even greater conflict. And remember, it may not be possible to make living legacy decisions that satisfy everyone. Even so – when parents’ wishes are clearly defined and explained in advance, it does eliminate future debates over “what mom and dad would have wanted done”. The biggest mistake overall is avoiding discussions for fear of what “might” happen. (Remember – lack of communication IS the problem.)

    38. © Copyright Allianz ENT200 02/2006 Living Legacy 38 of 58 For example… this seems like a good spot (after raising the issue of fear and conflict) to add a hypothetical family situation for group discussion - if there’s time for this. this seems like a good spot (after raising the issue of fear and conflict) to add a hypothetical family situation for group discussion - if there’s time for this.

    39. © Copyright Allianz ENT200 02/2006 Living Legacy 39 of 58 Tips for Planning Your Living Legacy Use the four pillars of legacy Enlist help in discussing and planning: The Alpha Child or Advisor Child A legacy advisor Start now Now let’s look at tips for planning your living legacy: Use the four pillars of legacy. Enlist help: The Alpha Child A legacy advisor . Start now. Now let’s look at tips for planning your living legacy: Use the four pillars of legacy. Enlist help: The Alpha Child A legacy advisor . Start now.

    40. © Copyright Allianz ENT200 02/2006 Living Legacy 40 of 58 So here’s what others are feeling. How about you? Four Pillars of Legacy Values & Life Lessons Instructions & Wishes to be Fulfilled Personal Possessions of Emotional Value Financial Assets &/or Real Estate Here’s what others are feeling. How about you? This broader approach to the topic of “legacy” is grounded in what we call the “four pillars of legacy”. Values and Life Lessons Instructions and Wishes to be Fulfilled Personal Possessions of Emotional Value Financial Assets and/or Real Estate. These pillars represent the different aspects of a living legacy. So let’s take a closer look at each of the pillars and some examples for each. Here’s what others are feeling. How about you? This broader approach to the topic of “legacy” is grounded in what we call the “four pillars of legacy”. Values and Life Lessons Instructions and Wishes to be Fulfilled Personal Possessions of Emotional Value Financial Assets and/or Real Estate. These pillars represent the different aspects of a living legacy. So let’s take a closer look at each of the pillars and some examples for each.

    41. © Copyright Allianz ENT200 02/2006 Living Legacy 41 of 58 You’ll find the “Four Pillars of Legacy” listed in your discovery journal. As we talk about each of these, you’ll have the opportunity to start thinking about what’s important to you and your family in these areas.You’ll find the “Four Pillars of Legacy” listed in your discovery journal. As we talk about each of these, you’ll have the opportunity to start thinking about what’s important to you and your family in these areas.

    42. © Copyright Allianz ENT200 02/2006 Living Legacy 42 of 58 Values & Life Lessons For example: Ethics & morality Faith & religion Customs & traditions Memories & stories How do you talk about these? Values and Life Lessons could include : Ethics and morality Faith and religion Customs and traditions Memories and stories How do you talk about these? Values and Life Lessons could include : Ethics and morality Faith and religion Customs and traditions Memories and stories How do you talk about these?

    43. © Copyright Allianz ENT200 02/2006 Living Legacy 43 of 58 Talking about: Values & Life Lessons Unites family members through shared history Less likely to be heated or controversial Everyone gets to be right; everyone can have what they want May provide “clues” to the direction of other issues Here’s why. When people share their ideas on the most important values and life lessons in the family – it generally puts the focus on the more positive aspects of family life. Even “hard times” can lead to valuable lessons learned and appreciated later on. So, starting here may help unite family members as they recount the values and life lessons of their shared history. These topics are less likely to be heated or controversial. Since values and life lessons are intangible, everyone can have whatever values and life lessons they choose. There’s nothing to agree on or to divide up. Additionally, these discussions may provide some clues to the family members’ feelings and expectations as you discuss the other legacy pillars.Here’s why. When people share their ideas on the most important values and life lessons in the family – it generally puts the focus on the more positive aspects of family life. Even “hard times” can lead to valuable lessons learned and appreciated later on. So, starting here may help unite family members as they recount the values and life lessons of their shared history. These topics are less likely to be heated or controversial. Since values and life lessons are intangible, everyone can have whatever values and life lessons they choose. There’s nothing to agree on or to divide up. Additionally, these discussions may provide some clues to the family members’ feelings and expectations as you discuss the other legacy pillars.

    44. © Copyright Allianz ENT200 02/2006 Living Legacy 44 of 58 Values & Life Lessons – a closer look Ethics & morality What are your standards for behavior? Why are they important to you? Faith & religion What do you believe and how did you come by those beliefs? Customs & traditions What family routines or rituals have been important and/or enjoyable over the years? Memories & stories What are the past experiences worth retelling over the years? Let’s take an even closer look. Ethics and morality – What are your standards for behavior? Why are they important to you? How have they served you well in the past? Faith and religion – What do you believe and how did you come by those beliefs? How do you practice or honor those beliefs? How have those beliefs been meaningful to you over the years? Customs and traditions – What family routines or rituals have been important and enjoyable on certain occasions over the years? How did they get started? Why do they continue? Memories and stories – What are the past experiences worth retelling over the years? (These may be humorous or serious; incidental or monumental.) What is their value (insight, lesson, entertaining, etc.) So now, let’s learn some examples surrounding the other pillars. Let’s take an even closer look. Ethics and morality – What are your standards for behavior? Why are they important to you? How have they served you well in the past? Faith and religion – What do you believe and how did you come by those beliefs? How do you practice or honor those beliefs? How have those beliefs been meaningful to you over the years? Customs and traditions – What family routines or rituals have been important and enjoyable on certain occasions over the years? How did they get started? Why do they continue? Memories and stories – What are the past experiences worth retelling over the years? (These may be humorous or serious; incidental or monumental.) What is their value (insight, lesson, entertaining, etc.) So now, let’s learn some examples surrounding the other pillars.

    45. © Copyright Allianz ENT200 02/2006 Living Legacy 45 of 58 Instructions & Wishes to be Fulfilled For example: Taking care of a loved one Ensuring that someone finishes their education Instructions for funeral arrangements Some examples of instructions and wishes to be fulfilled might include: Taking care of a loved one Ensuring that someone finishes their education Instructions for funeral arrangements Some examples of instructions and wishes to be fulfilled might include: Taking care of a loved one Ensuring that someone finishes their education Instructions for funeral arrangements

    46. © Copyright Allianz ENT200 02/2006 Living Legacy 46 of 58 Personal Possessions of Emotional Value Items that carries emotional or sentimental value regardless of financial value (which may be little or none) For example: Dad’s baseball glove Mom’s cookie plate Family rocking chair Personal possessions of emotional value could include any item that carries emotional sentimental value regardless of its financial value (which may be little or none). This could include: Dad’s baseball glove that brings back good memories of playing catch in the back yard. Mom’s cookie plate that triggers warm memories of homemade holiday treats. The family rocking chair that was part of the pre-bedtime ritual for many years. What personal possessions carry emotional or sentimental value in your family? Note one or two things under pillar #3. (Personal possessions of emotional value could include any item that carries emotional sentimental value regardless of its financial value (which may be little or none). This could include: Dad’s baseball glove that brings back good memories of playing catch in the back yard. Mom’s cookie plate that triggers warm memories of homemade holiday treats. The family rocking chair that was part of the pre-bedtime ritual for many years. What personal possessions carry emotional or sentimental value in your family? Note one or two things under pillar #3. (

    47. © Copyright Allianz ENT200 02/2006 Living Legacy 47 of 58 Financial Assets & Real Estate For example: Savings and Investments Residence and other real estate Other possessions with significant economic value And finally - financial assets and real estate, which would include things like savings, investment, the family residence or other real estate, along with other possessions that have significant economic value (and may or may not hold any special emotional value). And finally - financial assets and real estate, which would include things like savings, investment, the family residence or other real estate, along with other possessions that have significant economic value (and may or may not hold any special emotional value).

    48. © Copyright Allianz ENT200 02/2006 Living Legacy 48 of 58 Legacy Cards and Discovery Journal: This is a good spot to introduce the cards as ways to spark thoughts and conversations Present could show cards and introduce them as one of the discovery/planning tools available. Then – depending on size of group and seminar set up – let participants draw a card (individually or by tables/groups), then ask them to focus on the topic they drew and to write briefly what comes to find for their family situation.Legacy Cards and Discovery Journal: This is a good spot to introduce the cards as ways to spark thoughts and conversations Present could show cards and introduce them as one of the discovery/planning tools available. Then – depending on size of group and seminar set up – let participants draw a card (individually or by tables/groups), then ask them to focus on the topic they drew and to write briefly what comes to find for their family situation.

    49. © Copyright Allianz ENT200 02/2006 Living Legacy 49 of 58 Let’s take time go a little further with exploring one of these categories and how it fits your family. Let’s go back to the “customs and traditions” pillar. We’ve identified the “life lessons and values” pillar as a part of legacy that ranks high in importance to many baby boomers and their parents. In fact, the survey results showed it was the MOST important to a majority of survey participants. Since most of these are intangibles, however, what are some ways that life lessons and values can be preserved and passed on? (Invite group discussion; provide examples – have some samples to show or pass around such as photo albums, scrap books, guided journals, etc. These items could be used for door prize drawings at the end)Let’s take time go a little further with exploring one of these categories and how it fits your family. Let’s go back to the “customs and traditions” pillar. We’ve identified the “life lessons and values” pillar as a part of legacy that ranks high in importance to many baby boomers and their parents. In fact, the survey results showed it was the MOST important to a majority of survey participants. Since most of these are intangibles, however, what are some ways that life lessons and values can be preserved and passed on? (Invite group discussion; provide examples – have some samples to show or pass around such as photo albums, scrap books, guided journals, etc. These items could be used for door prize drawings at the end)

    50. © Copyright Allianz ENT200 02/2006 Living Legacy 50 of 58 Enlist Help In Talking & Planning Alpha Child : the child that parents generally turn to first Legacy Advisor: a trusted financial professional trained as a legacy advisor Finally, enlist some help in talking about and planning for legacy issues. Let’s take a look at two sources – one “insider” and one “outsider” – that can both play valuable roles in helping with this process: The “insider” emerged from the American Legacies study as the “alpha child” or “the child that parents turn to first. The “outsider” would be a financial professional who is trained as a legacy advisor. Finally, enlist some help in talking about and planning for legacy issues. Let’s take a look at two sources – one “insider” and one “outsider” – that can both play valuable roles in helping with this process: The “insider” emerged from the American Legacies study as the “alpha child” or “the child that parents turn to first. The “outsider” would be a financial professional who is trained as a legacy advisor.

    51. © Copyright Allianz ENT200 02/2006 Living Legacy 51 of 58 The Alpha Child Another interesting phenomenon emerged from study when exploring families in the context of Legacy: the Alpha Child. Significant numbers of both Elders and Boomers identified with the concept of an Alpha child in their family—defined as “the child parents turn to first.” This alpha child “designation” is not necessarily a function of birth order, gender, geography or any other tangible factor. Almost invariably, it is the child who is the closest to the parent emotionally and in whom the parent has most trust. Two in five Elders who have multiple children say they have an Alpha Child. The Alpha Child keeps the family connected and is a strong communicator. The Alpha Child is a leading resource for discussing legacy issues with their parents. Parents may find it useful to enlist the support of their alpha child for family discussions on legacy issues. If this is a concept that strikes home with you (whether or not you’ve heard the term “alpha child”) you may think it’s obvious to everyone in the family who the alpha child is. However . . . the study also showed that: 38% of Boomers think they are an Alpha child. With an average of 3.9 children, only 11% of Boomers actually are an Alpha child. So, many Boomers think they are the Alpha Child when they are not. Communicate with care.Another interesting phenomenon emerged from study when exploring families in the context of Legacy: the Alpha Child. Significant numbers of both Elders and Boomers identified with the concept of an Alpha child in their family—defined as “the child parents turn to first.” This alpha child “designation” is not necessarily a function of birth order, gender, geography or any other tangible factor. Almost invariably, it is the child who is the closest to the parent emotionally and in whom the parent has most trust. Two in five Elders who have multiple children say they have an Alpha Child. The Alpha Child keeps the family connected and is a strong communicator. The Alpha Child is a leading resource for discussing legacy issues with their parents. Parents may find it useful to enlist the support of their alpha child for family discussions on legacy issues. If this is a concept that strikes home with you (whether or not you’ve heard the term “alpha child”) you may think it’s obvious to everyone in the family who the alpha child is. However . . . the study also showed that: 38% of Boomers think they are an Alpha child. With an average of 3.9 children, only 11% of Boomers actually are an Alpha child. So, many Boomers think they are the Alpha Child when they are not. Communicate with care.

    52. © Copyright Allianz ENT200 02/2006 Living Legacy 52 of 58 Legacy Advisor Serves clients with empathy and integrity Understands the importance of each of the 4 Legacy Pillars Can help advise on (and/or facilitate) family discussions and planning Has the knowledge and resources to help you plan the financial aspects of your legacy transfer An effective legacy advisory: Serves their clients with empathy and integrity. understands the importance of each of the 4 Legacy Pillars. can help advise on (and/or facilitate) family discussions and planning. has the knowledge and resources to assist with planning the financial aspects of your legacy transfer. Even if a family member has professional knowledge about related matters (financial, legal, etc.) an outsider can add objectivity to the process. I’d pleased to provide this service to you and your family and can offer several tools for the process. An effective legacy advisory: Serves their clients with empathy and integrity. understands the importance of each of the 4 Legacy Pillars. can help advise on (and/or facilitate) family discussions and planning. has the knowledge and resources to assist with planning the financial aspects of your legacy transfer. Even if a family member has professional knowledge about related matters (financial, legal, etc.) an outsider can add objectivity to the process. I’d pleased to provide this service to you and your family and can offer several tools for the process.

    53. © Copyright Allianz ENT200 02/2006 Living Legacy 53 of 58 The Legacy Planner & Conversation Starter Cards Reference conversation starter cards again and describe the Legacy Planner tool – what it does and what end product will be for the client i.e. printed copies that can be bound and stored. Should we also convey some degree of “flexibility” in HOW the rep works with a client and their family? For example, some may welcome the rep to be at family discussions; other may prefer to get the rep’s suggestions on this but not to have them present.Reference conversation starter cards again and describe the Legacy Planner tool – what it does and what end product will be for the client i.e. printed copies that can be bound and stored. Should we also convey some degree of “flexibility” in HOW the rep works with a client and their family? For example, some may welcome the rep to be at family discussions; other may prefer to get the rep’s suggestions on this but not to have them present.

    54. © Copyright Allianz ENT200 02/2006 Living Legacy 54 of 58 Start now! Make the most of your life. Plan your living legacy to honor the life you’ve lived (so far) and take care of your family With planning done and decisions made you can enjoy living your legacy for the rest of your years Start now. Make the most of your life with a living legacy. Make the most of the part you’ve already lived by planning your living legacy. It’s a wonderful way to honor your life and take care of your family. Then – with planning done and decisions made – you can enjoy living your legacy for the rest of your years. . Start now. Make the most of your life with a living legacy. Make the most of the part you’ve already lived by planning your living legacy. It’s a wonderful way to honor your life and take care of your family. Then – with planning done and decisions made – you can enjoy living your legacy for the rest of your years. .

    55. © Copyright Allianz ENT200 02/2006 Living Legacy 55 of 58 Imagine how it would feel to have a living legacy in place? You’ve worked through all four legacy pillars, discussed them as a family, made decisions, and now have plans in place. How would you feel? How might this impact how you lived the rest of your life? Note those thoughts in your discovery journal.Imagine how it would feel to have a living legacy in place? You’ve worked through all four legacy pillars, discussed them as a family, made decisions, and now have plans in place. How would you feel? How might this impact how you lived the rest of your life? Note those thoughts in your discovery journal.

    56. © Copyright Allianz ENT200 02/2006 Living Legacy 56 of 58 I’d like to conclude with making it easy for you to take the next step in meeting with me to see how your family might use these services. DO NOT ask them to hand in their journal. To make it easier for those of you who want to start now . . . Please complete the evaluation form. . . . This does not obligate you to anything, but does give us a chance to talk further about your family situation and how this process could benefit you. Please respond based on what you learned and considered during this seminar: Our family would benefit from some further discussion/planning on: (circle all those that apply) – using 4 pillars. The thing that concerns me most about this process is: I think the best starting point is: Probably also need an option for: “not needed or interested at this time” When participants are done with this, they can turn it in to rep then (whatever) leave, look over planning tools, have refreshments, etc.I’d like to conclude with making it easy for you to take the next step in meeting with me to see how your family might use these services. DO NOT ask them to hand in their journal. To make it easier for those of you who want to start now . . . Please complete the evaluation form. . . . This does not obligate you to anything, but does give us a chance to talk further about your family situation and how this process could benefit you. Please respond based on what you learned and considered during this seminar: Our family would benefit from some further discussion/planning on: (circle all those that apply) – using 4 pillars. The thing that concerns me most about this process is: I think the best starting point is: Probably also need an option for: “not needed or interested at this time” When participants are done with this, they can turn it in to rep then (whatever) leave, look over planning tools, have refreshments, etc.

    57. © Copyright Allianz ENT200 02/2006 Living Legacy 57 of 58 Plan your living legacy now, then enjoy living your legacy! (Leave this closing slide up while participants complete their “call to action” response.)(Leave this closing slide up while participants complete their “call to action” response.)

    58. Living Legacy Discovering what’s really important. (Welcome, introductions, announcements, etc.) “Living Legacy – Discovering what’s really important.” This seminar came about as a result of some significant changes occurring in our population. For example . . . (Welcome, introductions, announcements, etc.) “Living Legacy – Discovering what’s really important.” This seminar came about as a result of some significant changes occurring in our population. For example . . .

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