- Are we filling an unmet need in the market?
- How will we reach out to prospective clients?
- How can we better position the company for growth?
- What does cash flow look like over the next year?
- How will we spend our current funds and budget for the next year?
- Do I have the right people working on the right projects?
- What are we completing this sprint and does it work toward our long-term goals?
- What is our exit plan?
How often do you consider these questions for your personal life?
An estate plan is commonly considered a document used solely to let the world know where your assets will go when you die, but the right estate plan can be so much more.
An estate plan provides guidance and protection during your life. It is an extension of your personal mission and the legacy you want to leave in this world. A good estate plan starts with a clear idea of where you are right now and your vision for the future.
- What are you passionate about?
- What do you value most?
- What impact do you want to have on your family, friends and the world at large?
- How much money will your investment strategy generate for passing to others in the long-term?
- What specific causes do you wish to contribute to?
Then it considers the impact of each component.
- Are there gaps in insurance coverages that increase the personal financial risk of leaving family members without enough to survive?
- What is the impact of your stock compensation package? Do shares immediately vest? Are shares held in private companies that are illiquid and unavailable for contributing to immediate needs?
- How will your ownership in ventures pass? Will enough cash be available to pay for income and estate taxes due upon passing?
- If you are a Founder, do you expect your company to exit or IPO in the next 3 to 5 years? See my article on the benefits of GRATs.
- Will your real estate be easily manageable or passed on to someone with the knowledge to manage it?
- How will you communicate your hopes and wishes to your family? How do you prepare them for unforeseen circumstances?
- Are your children ready for the impact of receiving a large number of assets now? How can you protect them for the future?
Finally, the supporting documents come together to support your vision and goals for your life. Your estate plan may include:
- Your last will and testament
- Health care directive and medical power of attorney
- Financial power of attorney
- Revised insurance policies
- New beneficiary and contingent beneficiary designations
- A letter or letters to your family and heirs to help them understand your wishes
Having no estate plan IS a plan. It is a plan to leave your family without clear direction of your intentions.
Reach out to us to ensure your life goals, values and legacy are aligned to support your life plan.