Estate Management Pitfalls

During your prime earning years, it may be a good idea to consider periodically updating your estate strategy to ensure that it reflects your wishes. From time to time, we see families make potentially expensive missteps.

Here are four common estate management mistakes:

1. Failing to create a strategy

Without creating a comprehensive estate strategy—or updating your existing approach—your assets may not be distributed according to your evolving wishes. Even worse, your loved ones may be forced to address complicated situations with limited guidance from you.

An updated approach to your estate could involve adjusting or creating a trust. As we work with clients on trusts, we remind them that a trust involves a complex set of tax rules and regulations. Before updating or creating a trust, we encourage clients to work with a professional who is familiar with the relevant rules and regulations.

2. Not periodically reviewing your strategy

Failing to regularly update your estate strategy can result in unintended consequences. Outdated estate strategies, especially those created when you were younger, may not reflect your current wishes or circumstances. By periodically reviewing your estate strategy, you give yourself the opportunity to revisit your prior decisions, especially if your family has undergone major life changes, such as births, deaths, marriages, or divorces.

3. Not considering taxes

Not preparing for taxes can be a challenge, and it may force your family to make difficult decisions. Remember that email messages are for informational purposes only and are not a replacement for real-life advice. To account for potential tax payments, we thus encourage families to consult with their tax, legal, and accounting representatives before modifying their estate strategy.

4. Not Using Professionals who work as a team

As you can see, creating, updating, and eventually implementing a comprehensive estate strategy can be complex. Even the most confident do-it-yourselfer may overlook a key decision or the role that a specific document can play.

As financial professionals, we can assume the role of quarterback in your estate team, coordinating activities with your estate attorney as well as any tax or accounting professionals who you work with.

Your evolving estate needs

Our firm’s mission is to provide more than just investment guidance. We strive to be a lifelong partner by helping your family to craft an estate strategy. We would be honored to guide you along your journey, helping you to manage setbacks while taking advantage of potential opportunities. When you’re ready, we’ll be there.

**This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.

Disclosure

Legacy Capital Wealth Partners, LLC (“Legacy Capital”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Legacy Capital and its representatives are properly licensed or exempt from licensure.

The information provided is for educational and informational purposes only and does not constitute investment advice, nor should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult with your attorney or tax advisor.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.