An Unnerving Topic

If your local newspaper published your obituary today, would you read it? In 1888, this surreal scenario played out for an accomplished inventor and industrialist who found himself reading his own obituary while very much alive. A death did occur, but it was his brother who had passed away, and a prominent local newspaper mistakenly published the obituary under the wrong name.

Imagine the horror of waking up one morning, sipping your coffee, and casually unfolding the daily newspaper only to be confronted with a headline announcing your own death.

The experience of seeing one’s obituary published right there in black and white would likely send shockwaves through the soul and immediately evoke deep existential questions about life, legacy, and one’s impact on the world. Add to that the opportunity of dissecting and scrutinizing every word crafted to capture the essence of your life’s story. Would curiosity overcome you?

A Moment of Truth

The subject of our story did just that. He wanted to know exactly how the world perceived him and poured over every single word. The findings were difficult to stomach. The obituary, among other things, described him as someone who “became rich by finding ways to kill more people faster than ever before.”

His name was Alfred Nobel, and had he not established the Nobel Foundation and Nobel Prizes, you might have known him today, unaffectionately, as “the merchant of death.”

Driven by the desire to reshape how he would be remembered, the inventor established a remarkable endowment to reward those who contributed to humanity’s greatest advancements in peace, literature, and sciences. Thus, the Nobel Prizes were born, transforming his legacy from one of destruction to one of enduring positive impact.

This story raises essential philosophical questions: How will we be remembered when we are gone? Will our lives leave a lasting positive impression on those around us? These are questions few of us get to ponder deeply, let alone address with the same dramatic clarity as someone reading their own obituary.

Introducing Estate Curation

Estate planning is a critical process in wealth management, not only for cementing our legacy but for ensuring a smooth transition of wealth. It is an iterative process that spans many years and decades, evolving as our lives and circumstances change. For younger individuals beginning their journey inheriting, managing, or building an estate, traditional estate planning topics may seem distant or even daunting.

Estate curation is an alternative approach to estate planning.

It’s a proactive, collaborative approach to building, growing, and transcending an estate. Unlike the reactive nature of traditional estate planning, estate curation begins early in life, using a stepping stones approach that evolves with one’s priorities and circumstances. Estate curation coincides with investment planning but extends beyond investment management. In our experience, even the most confident and capable DIY investors can find the complex tax and legal aspects of estate settlement overwhelming. Legal, financial, and medical considerations necessitate expert guidance to ensure a comprehensive approach.

An Adaptive Framework

Estate curation addresses the shortcomings of traditional estate planning much like portfolio glidepaths have transformed investing for retirement. While traditional estate planning often involves a heavily focused and intensive setup later in life, estate curation is a dynamic, lifelong process that evolves with the individual’s changing circumstances and priorities. This proactive approach ensures that one’s legacy is meticulously crafted and aligned with personal values and goals at every stage of life.

Early Life: Laying the Foundation

During the early stages of life, the focus is on establishing a strong foundation. This includes:

• Create Basic Estate Goals: Explore your goals for asset distribution, charitable giving, and legacy. Establish a basic will, powers of attorney, and a living will. Ensure that beneficiary designations on retirement accounts, life insurance policies, and other financial accounts are up to date.
• Inventorying Assets: List all assets, including real estate, bank accounts, investments, retirement accounts, personal property, and business interests. Identify ownership and titling of each asset.
• Basic Financial Planning: Establish good financial habits such as budgeting and saving. Start investing in diversified portfolios that match risk tolerance and financial goals. Open and contribute to retirement accounts like IRAs or 401(k)s.
• Education Planning: Set up education funds or trusts for future educational expenses. Pursue higher education and skill development to enhance career prospects.
• Career Planning: Make strategic career moves to build a successful and stable career. Engage in networking and professional development to increase earning potential.

Mid-Life: Building and Protecting Wealth

As life progresses, priorities shift to include family, homeownership, and wealth protection. Key elements during this stage include:

• Advanced Estate Planning: Draft a will outlining the distribution of your assets and appoint an executor. Consider establishing a living trust to manage your assets during your lifetime and after death. Designate someone to manage your financial affairs if you become incapacitated and appoint someone to make healthcare decisions on your behalf. Specify your wishes for medical treatment and end-of-life care.
• Planning for Family: Set up life insurance policies to protect the family’s financial future. Create or update wills to ensure assets are distributed according to wishes. Establish guardianship arrangements for minor children and start education funds for children’s future expenses.
• Homeownership: Plan for mortgage payments and home maintenance costs. Invest in real estate and other property-related investments. Consider home equity as part of the overall financial strategy.
• Wealth Protection and Growth: Diversify investments to spread risk and protect accumulated wealth. Maximize contributions to retirement accounts and other savings vehicles. Implement tax-efficient strategies to preserve assets and minimize liabilities.
• Tax Planning: Understand federal and state estate and gift tax laws. Develop strategies to minimize tax liabilities, such as gifting assets during your lifetime.
• Special Needs Planning: Establish a special needs trust if you have a dependent with special needs.

Later Life: Focusing on Legacy and Philanthropy

In the later stages of life, the focus shifts to ensuring a meaningful legacy and giving back to the community. Important considerations include:

• Retirement Planning: Ensuring a comfortable retirement requires meticulous planning. Optimize retirement income streams to ensure financial stability. Manage healthcare costs and consider long-term care insurance. Adjust investment strategies to match a lower risk tolerance.
• Philanthropy and Giving: Set up charitable trusts or foundations to support causes you care about. Make donations to favorite charities or establish scholarships and grants. Plan for tax-efficient charitable giving to maximize impact.
• Legacy Planning: Write memoirs and preserve family history to pass down traditions and values. Ensure that one’s legacy aligns with personal values and aspirations. Discuss estate plans with heirs and ensure they understand and respect your wishes.
• Final Arrangements: Specify your preferences for funeral and burial arrangements. Consider setting aside funds to cover these expenses.

Estate Curation Best Practices

Effective estate curation is an ongoing process requiring careful planning, regular updates, and professional guidance to ensure your estate plan remains relevant, comprehensive, and reflective of evolving personal and financial circumstances. Key best practices include:

• Periodic Review: Regularly update your estate plan, especially after major life events, to keep it current. Ensure that all documents reflect current laws and your personal circumstances.
• Professional Assistance: Seek guidance from estate planning attorneys, financial advisors, and accountants to ensure legal, financial, and tax efficiency. These professionals help craft a legally sound, financially strategic, and tax-efficient estate plan.
• Document Storage and Access: Store original documents with a trusted partner in a secure location, either physically or virtually. Provide copies to relevant parties, such as your executor, attorney, and family members. Ensure key individuals know where to find your documents and have access to them when needed.

By adhering to these practices, you can create a robust and adaptable estate plan that provides peace of mind for you and your loved ones.

Partner with American Trust Wealth

At American Trust Wealth, we understand that estate planning is more than just a legal or financial necessity; it’s about securing your legacy and ensuring peace of mind for you and your loved ones. Through the practice of estate curation, you can create a dynamic, evolving plan that adapts to your life’s changes and reflects your values and aspirations.

Whether you are just starting to build your estate or looking to refine an existing plan, American Trust Wealth has the expertise, resources, and network to easily work alongside, and in coordination with, a team of professionals to craft a comprehensive, personalized estate plan that meets your unique needs.