Friday, July 25, 2014
The fear of not having enough money to carry through the end of life is a common fear, but a less common fear is having too much money at death. This may be a concern that should also be considered when making spending and estate planning decisions. For those that lived through the Great Depression the idea of sudden and unexpected financial disaster is very real and that lesson has been passed on and created an estate planning focus on how to ensure enough funds and lower risks.
However, it is also important to balance the risk of running out of money with the risk of leaving too much money, which can result in large tax bills or children receiving large inheritances that they are not ready to manage responsibly. Another risk associated with saving too much is that it is not enjoyed by the owner to both provide for themselves and their family while they are living.
See Charlie Jordan, How Dying Too Rich Can Hurt You and Your Estate, Market Watch, July 24, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.