Yes, 50% of the net worth vanished…gone. This is an extreme case but one I’m familiar with because its personal…its family.
But its not too uncommon to see even one third of the net worth disappear even at the death of the first spouse. But wait, doesn’t the estate pass to the surviving spouse by marital deduction? Sure. But it doesn’t mean it will without some work. You’ve got to set it up right. And of course it also doesn’t mean the knowledge and understanding of the assets, how to manage the assets and how to run the business will get passed on.
Wealth doesn’t just vanish…of course not. It takes:
- misunderstanding of assets and people
- unnecessary taxes
- ultimately the lack of plan or an incomplete one
Wait, i didn’t say anything about estate documents, having the ‘best’ attorney and even a money manager. The vanishing happens even when these advisors are in place. At least it was in our personal situation and in every case I’ve seen to date.
Don’t let your wealth perform the vanishing act…get a comprehensive review and plan that goes beyond the assets on the balance sheet.