You’ve worked hard. You’ve put in the time and energy, invested well, and allowed your money to grow into the tidy sum that you have now. You have spent so much time working and planning for the future, but have you planned for what will happen once you pass?

A millionaire survey conducted by CNBC in 2015 found that “38% of those with investable assets of $1 million or more have not used a financial expert to establish even the most basic estate plan”, according to an article by MassMutual. With a high net worth, estate planning can become all the more challenging. For most, the simple and quick solution of a will is not enough to properly handle a complex estate.

Where to Start:

Creating an estate plan can be quite difficult. After all, no one enjoys having to think of their loved ones mourning their passing. However, not having your affairs in order before you pass can make an already difficult time almost unbearable. For individuals with high net worth estates it can become even more complicated. That’s why it is vital to clarify and document your mission, vision, values, and goals before going into the estate planning process. Identify exactly what you want to happen to your estate once you’re gone so that no one has to endure the task of guessing what you might have wanted.

Making a Plan:

Trust are among the best ways to protect your assets and protect your family from having to deal with the expensive and drawn-out probate process. Opposite from wills which are available to be taxed and require probate, trusts can minimize estate tax liability and protect assets from creditors, legal claims, and divorce. For high net worth estates, the flexibility that trusts offer is what makes them such a great option. Another important role to establish is Power of Attorney. Grant this title to someone that you trust so that in the case you become incapacitated, you can still be sure that your wishes are being carried out.

Questions to ask Yourself:

Who do you want your wealth to pass on to? Do you have a spouse or children? Grant yourself peace of mind by establishing a trust so that your family will be protected once you are no longer there to protect them.

Have you considered gifting a portion of your wealth to a charity or an organization that holds a special place in your heart?

How do you want your wealth distributed? If you have children, are they old enough to receive a lump sum all at once or would you prefer that they receive it slowly over time or once they reach a certain age or milestone.

Estate planning can be difficult, estate planning for someone with a high net worth can be even more of a challenge. Don’t risk your family’s well-being. Leave behind a legacy, not a headache.

Interested in planning your estate? Call 703-934-4895 or contact pcoppola@acornep.com to schedule a complimentary consultation