Estate planning is an essential part of preparing for the end of life, and it can be complicated even for the average person. However, if you are a person with significant assets or a well-known public profile, you have additional considerations to take into account. As John Branca Attorney explains, high-profile individuals should treat their estates like businesses that continue even after their deaths.
Proper estate planning ensures that your intentions are honored and reduces confusion and heartache for your loved ones. During high-asset estate planning, avoid these missteps to help ensure a smooth process after you pass.
Choosing the Wrong Executor and Other Representatives
The executor of the estate manages the distribution of your assets and makes sure that your other wishes are followed. You will want to choose someone you can trust who has a track record of reliability. You may want to consider an independent party for this role.
You will also want to consider who you should appoint as a power of attorney and health care proxy. These are the people who will make financial and health decisions for you if you become incapacitated or otherwise unable to do so.
Failing to Prepare the Proper Documents
There are many different ways to organize and distribute your estate. Wills and trusts are common instruments used for this purpose. Unfortunately, even celebrities sometimes fail to have the simplest of these measures in place. For example, according to John Branca Attorney, Prince did not have a will when he died, which left the distribution of his assets to the state and its courts.
To avoid a similarly messy process, you should work closely with an estate planning expert to ensure you have the right documents in place. As a person with high-value assets, you will likely want to avoid as much of the probate process as possible to save your beneficiaries from lengthy and stressful court proceedings.
Forgetting To Consider the Tax Implications
Each state has its own set of tax laws, and you will need to carefully consider how these laws could affect your beneficiaries as you draft your estate plans. Additionally, as an individual with a high net worth, your estate may also be impacted by the federal estate tax.
Like most people, you probably don’t want to think about the end of your life, but this mistake could cause serious strain and hardship for your loved ones as they grieve. Proper planning will help to ensure your beneficiaries are provided for as you wish.