We all have them, opinions, that is. When I work on estate planning I have opinions that I have developed over the past 45 years.
My first opinion has to do with the way I live my life. While I am not attempting to bestow a philosophy on anyone, that old Christian adage sums it up; treat others as you would have them treat you. In a world that seems to be making less sense each day, I’ll stick with my philosophy.
I think we appreciate that which we earn more than that which we are given. Yet, when my day is done, I want my children and their children to benefit from the effort I expended chasing “the American Dream”. I hope I have taught those I care most about to appreciate that which they have earned themselves compared with what they might be given. I want them to protect and preserve rather than waste and dissipate.
While I have paid millions in taxes over my career, I would like to teach people how to pay less and keep more. To do this legally is challenging but doable. I would have liked someone to have taught this to me when I was young and starting out. Unfortunately, no one shared these simple concepts with me. For this reason, I share the ideas about preserving wealth with people who ask. Still, unfortunately, most people seem to have a difficult time with deciding to grow their assets when they are young.
When people become mature (my word for older) I try to share with them ideas on estate enhancement and preservation. This, too, has to do with tax planning. People can leave their lifetime’s unspent net worth to those they love or to others. Abdication of responsibility ultimately leaves most assets to the tax man and others we’d probably not want to enrich.
I just read about the entertainer, Prince, who died without a will. At least half of his estate will go to the government of Minnesota and the United States, which, in his case, could be half a billion dollars. The rest of his estate will be shared by obtain a will.
My best advice is not to be like Prince. Do not wait until it is too late to do “tax-smart” investment accumulation. If you have waited to middle age or beyond, start doing your estate and retirement planning now. attorneys, accountants, creditors and distant family. The distant family will be left with a minor share when the dividing up is done. He missed the opportunity to minimize taxes, decide where his assets would go and he missed the chance to help charities he might have cared about. All because he did not
If you have serious concerns related to doing “Tax Smart Planning”, call David or Sharon at my office and arrange an appointment.