The start of a new year is a special time. It makes one think about the past, the future and all those transitions in between that we might call “life”. Most people (including me) make resolutions that usually relate to some type of activity or habit, such as “eating less” or “exercising more”. These last few years my resolutions have related more to changing my thoughts and attitudes and much to my surprise I have not only found that approach more effective, but it has also led to better emotional and physical health.
I want to share a few suggestions for changing thoughts and attitudes that relate to personal estate and financial planning. I hope you find some of these ideas beneficial.

1. Be Wary of Simple Planning Advice.

Due to technological advances and the decline of traditional media, we live in a different world. Our attention spans are shorter and we are more susceptible to “sound-bite advice.” I have had quite a few clients ask me about planning ideas they learned about on Tik Tok.
These resources can provide a good introduction to these topics, but unfortunately the real world is much more complicated. There are always pros and cons to every planning technique and it is important to dive a little deeper to understand those issues prior to making a planning decision.
For example, some people may hear that the nursing home will take their residence should they need long-term care (not true by the way), and will deed their property to a child. There may be a benefit to this transaction, but typically the costs outweigh it, as the former homeowner will lose any tax exemption, there will now be capital gains tax issues when the residence is sold and the child may not be an amenable landlord.

2. Don’t Always Chase Cost Savings.

As a young lawyer, I was always chasing tax savings for my clients and if there was a path with the most tax savings, I would recommend it. I had a great mentor who called me out on this habit and reminded me that good estate and financial planning should not solely be driven by cost savings. There are planning options that may save you a few dollars, but would have terrible effects on your family.
One example is the decision to leave a retirement account to an individual or to a trust for that individual. Sometimes leaving the asset to a trust may result in a little more tax being paid (there are ways to minimize this by the way). However, assets in a trust are protected from creditors and the beneficiary’s bad decisions. The decision to leave a retirement account outright to a beneficiary to save a few tax dollars may result in the loss of the entire account.

3. Remember “Enjoyment” When Wealth Planning.

One of my favorite books is Die With Zero by Bill Perkins (for more information on this book, see https://www.diewithzerobook.com/welcome). The basic concept is that we are all trained to accumulate as much wealth as we can for our later years. Financial planners call this retirement planning and it is a good thing. However, that tendency to accumulate could go too far and we end up forgoing our enjoyment of money for the sake of hoarding it. Mr. Perkins makes a compelling point that as we age, we accumulate more, but our ability to use money declines. There is a sweet spot where we can still have enough for our security and at the same time enjoy the fruits of our labor.
I remember speaking with an individual about a client who passed away. The client lived a long life and when he passed he had over $3 million that he was leaving to his children. I remember that individual making a comment that the client had done a pretty poor job with his financial planning. I was pretty shocked and wanted to know what he meant. His response was that the man accumulated more wealth than he actually needed. That statement shocked me into a different perspective on wealth accumulation.

May you and your family have a safe and blessed 2025!