Perhaps having attained success that leads to wealth makes wealthy people think that they are not going to make any mistakes in estate planning. Unfortunately, the wealthy are just as likely as the rest of us to make mistakes.
Most wealthy people hear about the expensive mistakes that their peers make and think they’ll never do that to their family. Sometimes great success breeds over-confidence, and they don’t believe they could possibly make the same mistakes.
However, the wealthy make the same mistakes over and over again, so the most common mistakes are worth repeating in the hopes they will sink in through repetition.
Recently, the Wills, Trusts & Estates Prof Blog published an article titled "Five Estate Planning Mistakes Made By the Wealthy."
The list includes:
- Not Making an Estate Plan at all - All too often people think they have plenty of time to make an estate plan and wait until it is too late to make one.
- Lifestyle Inflation - Wealthy people often think they need to spend a lot of money to project their success and often spend too much in the process.
- Not Paying Taxes on Time - When wealthy people fall behind on their taxes, the fines and penalties can make the wealth disappear quickly.
- Not Having a Prenuptial Agreement - It is great for wealthy people to assume that a marriage will work out, but they should plan for what will happen if it does not to protect their wealth.
- Delegating too Many Financial Matters - Using professionals to assist with finances is important, but it is also important to stay involved and know what is happening with their assets.
Don’t fall prey to these otherwise avoidable mistakes.
Contact an experienced estate planning attorney to help you navigate these shoals.
Reference: Wills, Trusts & Estates Prof Blog (July 18, 2015) "Five Estate Planning Mistakes Made By the Wealthy."