Succession Topics – Top Ten Planning Mistakes

Succession Topics
StateTrust Life and Annuities, along with the participation of specialized experts, designs the most ideal structure (creating a trust, a personal assets company or a private foundation) seeking to bring the financial goals of its customers into harmony with the taxation requirements applicable in each case, based on their country of origin.
Top Ten Planning Mistakes

Succession planning requires a strategic plan to maintain the financial health of estate assets, which will be passed down to beneficiaries.

1 Lack of a will or failing to update it periodically: When someone dies without a will in place, the Government has the authority to dispose of assets.
2 Lack of flexibility: Life changes. Being inflexible can leave future needs unprotected.
3 Lack of liquidity at the time of death: When there isn’t enough cash to cover the costs of a death, it will be necessary to sell some assets.
4 Not planning for the future of your business: Planning is essential in calculating and projecting the future of your business, in case of an untimely death.
5 Not including a life insurance policy as part of your estate’s assets: Benefits from your life insurance policy are considered part of your estate.
6 Not taking advantage of changes in tax laws: Tax structures may change every year. It is important to revise your assets periodically.
7 Not having a retirement plan: Planning for retirement has to do with the income you will need once you retire. This affects the total value of your estate.
8 Excessive trust on external sources of income: If your income is derived from government sources or pension plans, whether public or private, be mindful of any changes in regulations and requirements.
9 Poor asset structure/diversification: The combination of investments and income should be efficient and stable.
10 Lack of an updated succession plan: Succession plans must be updated periodically to reflect any new changes in your situation.