Saturday, July 18, 2015
Five Estate Planning Mistakes Made By The Wealthy
It is common for wealthy families to make estate planning mistakes. This article lists five of the most common money management mistakes made by wealthy households:
- Not having an estate plan. It is very common for people to put off making an estate plan, but that can often lead to difficult issues if something unexpected happens. It is a good idea to consult with an expert about drafting a plan.
- Giving in to lifestyle inflation. People with wealth often make the mistake of splurging on luxuries to try to maintain an image of success. It is important to balance the desire for luxuries with the need to save and invest.
- Failing to pay taxes on time. If a person neglects to pay taxes on time that can lead to difficult problems with the IRS, people should try to stay on top of their taxes to avoid such a problem.
- Not having a prenuptial agreement. Signing a prenuptial agreement before marriage can help safeguard assets and protect future earnings.
- Delegating out too many financial responsibilities. It is important to stay on top of financial affairs and not put too much trust in another person to manage assets.
See Molly Triffin, 5 Money Mistakes Even The Super Wealthy Make, Forbes, July 10, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.