Building a Comprehensive Estate Plan: Risk Management

Are you exposed?

Risk management is an essential part of financial and estate planning. This strategy anticipates potential elements that can devastate your portfolio and your estate - and, more importantly, it covers the important matters that keep you up at night.

The following list addresses key risks that should be managed:

• Property and casualty loss
• Healthcare concerns
• Financial decline or depletion
• Cyber threats and identity theft
• Unnecessary exposure based on legal titling of assets

If you are curious where you fall on the scale, feel free to take our Risk Management Self-Evaluation Quiz linked here, then follow that up with our article summarizing these risks.

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Six Key Components of a Great Estate Plan - Part 3

This is the third of a six-part series on building a comprehensive estate plan. This plan is designed to protect you and your heirs for many generations to come ...

As our mantra states “Today’s Plans Become Tomorrow’s Legacy.”

Part 1 - Building a Road Map for Estate Planning and Financial Success;

Part 2 - Team Building: Original building of estate planning team;

Part 3 - Risk Management;

Part 4 - Core Documents and Essential Components to a Comprehensive Plan;

Part 5 - Customization of Trusts; and

Part 6 - Legacy Component.

Enjoy the series and as always, we welcome your feedback. Our goal is to equip you with the insight and information you need to have confidence that you have designed and implemented a solid estate plan.

Part 3 - Risk Management

Insuring against the risk of loss is an essential component of a well-drafted and implemented estate plan. You may either self-insure or buy products that provide wealth replacement in the case of loss of value.

The traditional risk of loss applies to situations such as an accident, casualty loss, or “act of God” events such as a hurricane.

Here, risk management encapsulates a much broader picture. It encompasses any decline in wealth due to:

Market risk

Longevity risk

Deflation risk

Withdrawal rate risk

Order of returns risk

Long term care risk

Mortality risk

Inflation risk

Regulatory risk

Taxation risk

And more…

The best time to plant a tree is twenty years ago ... then the next best time is now ... Chinese Proverb.