3 Mistakes in Trust and Estate Planning
- Create it and forget it
- Mismatch of your family and your money
- IRA assets left rudderless
Trust Mistake #1
Create it and forget it
— 95% of wealthy families who create an estate plan with a Will, Medical/Financial POA, and/or Revocable Trust are done once and then only after someone dies — everything in the Trust and Estate Planning is forgotten.
— The Family Members Never Talk About it
— The Financial Advisory team never reviews it
— The people are supposed to be beneficiary's of your plan are clueless.
— Life events can change fast.
— death,
— divorce,
— retirement,
— sale of business,
— other changes in your family situation
Your Will and Your Plan
— Medical/Financial POA and
— important elements of your estate planning need to reflect and adapt to those changes.
Why We Recommend a Trust Review in 2018!
Trust Mistake #2
Mismatch of your Purpose and your Money
We all have an opinion about our money and how our family should manage it. The fact that money is the #1 reason for divorce in America illustrates the need for better communication.
Vision,Values, and Purpose
Sometimes our vision, values, and purpose aligns with our family — including our spouse. Most of the time our financial purpose DOES NOT align with everyone in our family. Should it?
Your Will and the trusts created from your Will need your vision, values, and purpose to be clearly communicated.
Just think about your children, grandchildren, and the next generation. Will they be equipped to effectively manage the liquid investments and potential non-liquid investment assets in your estate without a clear Blueprint?
When your vision, values, and purpose are clearly laid out in your Will, your hopes and dreams (in terms of what your Will and Estate Plan will accomplish) are far more likely to become reality for the people you love.
Family Wealth Purpose Statement
When your vision, values, and purpose are clear, you and your family will experience a lot more confidence about how your plan will — or will not — achieve What Matters Most for the people you love. When you have more clarity and more confidence, your family will be far more likely to experience more contentment in your financial life.
Trust Mistake #3
IRA assets left rudderless
There are 15 choices a surviving spouse has to make when inheriting an IRA. IRA rules change. The holder of your money, the custodian, has very inconsistent interpretations of your IRA assets when looking at your Will or Revocable Trust. Most estate planning lawyers are not deeply knowledge on handling IRA assets exactly how a client wants it. Using a Trusteed IRA can solve those issues.
Your Next Step
Schedule Your Trust Review
It all starts with a thoughtful review of your family’s Trust. And, its free, so call or email Chris today and be sure you mention this podcast. When we meet, I’d love to give you a copy of my book Make Your Money Count as a gesture of my commitment to help you, your family, and other people…
Manage the risk and reward of everyday life, recover from the unexpected, and realize your highest purpose. That’s my mission at Family Wealth Builder of Houston.
Jim Munchbach, Certified Financial Planner™
CEO | Family Wealth Builder of Houston Jim@FamilyWealthBuilder.com (832) 895-1700
https://www.familywealthbuilder.com
Christopher N. Holtby
Co-Founder | Wealth Advisors Trust Company
https://wealthadvisorstrust.com
