Estate Planning During an Economic Downturn

Estate Planning
Written By Mike Mulcahy, CFA® CPWA® CTFA

Should estate planning be a priority in a time like this? Yes!

Estate Planning During Economic Downturns

Dynamic markets create many opportunities to review your current situation and re-evaluate your estate planning strategies. Unfortunately, all of us have the tendency to focus on critical, near-term issues such as our business viability and our personal safety. As we focus more on the present pains, we tend to miss the potential opportunities that arise to optimize estate structures.

What Are My Estate Planning Opportunities?

Here are a few examples of opportunities you can be assessing during this time:

  • Depressed asset and investment values may create an ideal time for gifting because it uses up less of your lifetime gift tax exemptions.

  • Depressed asset and investment values may create opportunities to use creative trust structures such as zeroed out GRATs to transfer more wealth out of your estate.

  • Shifting asset values may make substitution rights in certain trusts prudent.

  • Certain executive compensation structures may trigger more tax-efficient execution options.

  • Changes in income levels may impact retirement planning and charitable giving strategies.

When Should I Review My Estate Plans?

In general, it is good to review estate planning periodically, particularly at times of:

  • Personal life changes (e.g. goals, marriages, aging children, new children, health changes)

  • Financial life changes (e.g. inheritance, long-term care, special needs, retirement, job changes)

  • Legislative changes (e.g. estate tax, new Congressional Acts, income tax)- and we have had many of these recently!

Too Busy? We Can Help!

The current financial and political market could be an ideal time for an estate planning checkup. If you are inundated with the busyness of near-term issues, perhaps you could benefit from a trusted adviser who can provide thoughtful advice during this volatile time and in the times to come. As part of Kings Path’s services, we provide estate checkups with the perspective of your unique goals, concerns, family structure, and financial situation. Contact us if you would like to make the most of this time and receive a personalized estate checkup or strategy.

Mike Mulcahy, CFA® CPWA® CTFA

With the founding of Kings Path Partners, Mike brings a diverse set of professional and personal experiences into the wealth services business. His professional roles and community experiences give him a unique and real perspective into the needs of families, entrepreneurs, and business executives. Previous roles include president of a $6B investment management firm; management consultant with McKinsey & Company; VP of corporate finance & strategy with Compaq/HP; and managing director of an entrepreneurial web-based business. He is also an active venture investor with a focus on impact investing and social enterprises.

Mike earned an MBA from the Harvard Graduate School of Business and completed an Executive Program in Portfolio Management at the University of Chicago. He graduated summa cum laude with a Bachelor of Science in Economics with a minor in Chemistry from Texas A&M University. He holds designations as a Certified Private Wealth Adviser®, Chartered Financial Analyst®, and Certified Trust and Fiduciary Advisor (CTFA). He is a member of the Investments & Wealth Institute® and the CFA Society of Houston.

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Kings Path Partners, LLC (KPP) is an SEC-registered investment advisory business based in Sugar Land, Texas. KPP has published this article for informational purposes only. To the best of our knowledge, the material included in this article was gathered from sources KPP believes to be accurate and reliable. That noted, KPP cannot guarantee that this information is accurate and complete and cannot be held liable for any errors or omissions. Readers have the responsibility to independently confirm the information herein. KPP does not accept any liability for any loss or damage whatsoever caused in reliance upon such information. KPP provides this information with the understanding that it is not engaged in rendering legal, accounting, or tax services. In particular, none of this published material should be considered advice tailored to the needs of any specific investor. KPP recommends that all investors seek out the services of competent professionals in any of the aforementioned areas. With respect to the description of any investment strategies, simulations, or investment recommendations, KPP cannot provide any assurances that they will perform as expected and as described in this article. Past performance is not indicative of future results. Every investment program has the potential for loss as well as gain.

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