You can find a variety of statistics online about estate planning, and the one thing that jumps out is that most American citizens do not have estate plans in place. I always focus on this idea of comprehensive estate planning, and even more U.S. citizens don’t have up-to-date, comprehensive estate plans in place. The most recent statistic I came across indicated that nearly 90% don’t have a comprehensive plan, which is just crazy, really.
Anytime I talk to a client, I’m trying to understand three different things initially:
1. **Family Dynamics**: What is the family situation? Does everyone get along? If not, why? What’s the history of the family?
2. **Financial Assets**: What makes up the client’s estate? What assets are involved?
3. **Intentions and Goals**: What does the client want to achieve with their estate plan?
Once I have enough information on these three areas, I can start developing a comprehensive plan.
Regardless of net worth, everyone needs the basic estate planning documents: a last will and testament, a power of attorney, healthcare surrogate designation, HIPAA authorization, and a living will declaration. Different attorneys may refer to these documents by different names, but they all serve the same purposes.
Next, I focus on family and asset protection—trying to protect the family and assets from various risks, including:
– **Internal Risks**: Protecting family members from each other, depending on the family situation.
– **External Risks**: Protecting against creditors, lawsuits, spousal and divorce claims.
– **Probate**: Making sure assets don’t have to go through the probate process unnecessarily.
Another huge aspect is business succession planning. Many business owners don’t have a plan in place for what happens to their business after they pass away, retire, or become incapacitated. They spend a lifetime building something successful but don’t take the necessary steps to ensure that success continues.
There’s also charitable and planned giving. Many people realize that just leaving everything to their family isn’t always the best option. We help clients with charitable giving in ways that make sense for them, their assets, and their family.
Lastly, generational wealth and tax planning go hand in hand. I want to make sure we’re creating generational wealth to the extent possible—not just for the next generation but for many generations to come. And I want to do it in a tax-efficient way.
So, when you sit down to brainstorm your estate plan, make sure you’re considering all the different facets and aspects that need to be addressed. If you’re not, you’re likely to miss something, which could cause issues either during your lifetime or years after you’ve passed. Comprehensive estate planning is a thorough process, and for some people, it can be daunting. But I’ve never met anyone who regretted doing it once they got through it. If anything, it gives people peace of mind.