You, and many others, might think that estate planning strategies, tactics, and tools haven’t changed over the years. No one would blame you for thinking that way. From an outsider’s perspective, it appears pretty static: wills, trusts, and legal documents such as power of attorney or healthcare directives.
In fact, estate planning is ever-evolving to meet client’s needs and adapt to changing laws and societal expectations. The following are some trends I’ve seen over the past few years.
DIGITAL ESTATE PLANNING
Digital estate planning includes digital assets such as cryptocurrencies as well as social media accounts, online banking, and digital files. Just like ensuring an executor has access to the key to your safety deposit box, it is essential to provide that executor the “key” to your online finances or access instructions.
INTERGENERATIONAL PLANNING
It is no longer rare for an individual to reach 90 years of age or even 100. With life expectancies greater than years past, estate planning can include strategies to preserve wealth across generations. The mindset is different than even twenty years ago.
PRIVACY AND ASSET PROTECTION
Privacy has never been more important as our lives (and everything about them) are so easily exposed to the world through online access, data tracking, and mining.
There is an increased concern and desire for privacy and asset protection, which has led to the development of various trusts and legal structures designed to shield assets from potential creditors or lawsuits while maintaining confidentiality.
INCREASED USE OF TRUSTS
It is true that in the past, trusts were more often used by the wealthiest to bypass probate and protect assets. Nowadays, trusts are used by the wealthy and not-so-wealthy alike. Various types are available, and they have become a popular tool. They can be customized to a client’s individual needs.
FOCUS ON COMPREHENSIVE PLANNING
While some clients might still want to have just a will and a few other legal documents like a living will or medical directive, comprehensive planning or holistic estate planning pulls together not just a client’s financial and asset distribution but also addresses guardianship for minors, end-of-life preferences and more in a comprehensive manner.
SUSTAINABLE AND IMPACT INVESTING
A significant trend we’re seeing among clients is a desire to align their estate planning with their investment strategies regarding the environment or social principles to support causes they care about during their lifetime and beyond.
PETS AS FAMILY
Last but not least, more and more estate plans include future pet care. While a pet cannot be a beneficiary, clients can make arrangements regarding who will care for the animal and set up funds for that pet’s needs.
Estate planning is not a cookie-cutter solution, and with these new trends, it is becoming more customized than ever before. All of the old and new strategies and tools are available to an experienced estate planning attorney like me to ensure a client’s plan is not only what is needed and wanted but that it meets all legal requirements and is not open to interpretation or dispute. If this sounds like the kind of estate plan you’d like, contact me at www.davidlefton.com or call 513-399-7526.
I look forward to creating the perfect estate plan for you and your loved ones.