Mitigating risks to your estate plan

Risk planning is not a linear process. It’s like a tree with many branches growing from the main trunk. To do it successfully requires two important steps: First, make sure to list all potential trends. These trends may include a large amount of estate tax. In the case of a family owned business it could be estate taxes and dealing with minority stockholders. Succession issues with a business partner or an economy that’s made business conditions difficult should also be included on the list. Remember, each condition, and combination of conditions, leads to different results.

Second, list the contingencies that allow you to have flexibility. What types of tax-planning tools can you employ to mitigate that expense and still provide for the family’s financial future? Who are the potential candidates to take on a leadership role at the company?

We anticipate changes and mitigate risks

No one has a crystal ball for the future, but everyone has to consider what the future might bring, especially when looking at how best to plan their estate. Risk Planning has to be able to account for the unforeseen obstacles the future holds, an integral part of succession planning. Risk planning involves taking the time, and making the effort – right from the start – to figure out how to cope with a crisis. The crisis may be as simple as making sure you’re carrying enough insurance or as complex as whether to keep a business or sell it. Either way, it’s important to remember that there is not one scenario, or solution, to each potential issue.

At Erskine & Erskine, we look to guide you through the process of managing and planning your estate. Well versed in the risk planning aspects of estates like Captive Planning as well as using tools like Donor Advised Funds. Additionally, we integrate your various succession needs with Business Succession Plans and other succession tools. Erskine & Erskine can create a strategy that will better prepare your estate for the future.