Stop Calling It “Estate” Planning when it’s Actually Family Planning The Most Successful Estate Plans are Driven by Who and What Matters Most to You, Rather than by Tax Strategies. By Nicholas Preddice
Nicholas Preddice Founding Partner AffinityBST Advisors 973-534-5785 npreddice@affinitybstadvisors.com
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oals, outcomes, dreams – call them what you will, if you don’t know where you’re going, chances are you won’t get there. Every aspect of our lives, personal as well as professional, is organized around identifying objectives, keeping our eyes on the prize, and making necessary course corrections. And since none of us can play every position or has eyes in the back of our head, we rely on myriad resources: partners, maps, coaches, game plans, newsfeeds, you name it. Butfirst,weneedtonamethatonebigthingwe’reafter.
Case in point: I recently met with a client who wants to update his estate plan.Withhisbusinessfirmlyestablishedandkidsincollege,he to transition to retirement. Given his net worth, the plan he shared was highly complicated, so per ABA’s process, we built a global overview schematic. Reviewing it, however, left this very successful entrepreneur in shock: “This isn’t what I thought it was at all. It doesn’t do what I want it to do.” Unfortunately, I hear this way too often. Not because people are remiss or don’t hire good lawyers, but because in the case of “estates”,ourculturegenerallymisidentifiestheheartoft
Prioritizing dollar values – the net worth of the business, real estate, and investment portfolio – over what I call “family values” yields estate plans guided by tax strategies, even though that tax landscape is constantly evolving and will likely be quite different by the time the planisputintoAaction. successful,effectiveestateplanisguidedfir and foremost by who and what matters most to you; the technical, legal strategies and tactics should serve your highest purpose, not vice versa. What does this look like? The following snapshots highlight family values-driven estate plans that prioritize people and purpose, where money is the means, not the be-all and end-all. 32
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