In the case of a company, it is the perceived capability of that firm to adapt to disruptions and continue operations in the face of setbacks and adversity.
My clients are, in many cases, small business owners, entrepreneurs and risk takers. They are often resilient and adaptable – they have to be.
But, from an estate planning perspective…Why am I writing about resilience?
An estate plan also needs resilience. A plan can be disrupted from within, by changes such as marriage, divorce, and death. A plan can be disrupted from outside, by changes in tax regulations and the economy in general.
For example- A sudden disruption of your retirement financial planning can impact an estate plan; an unfavorable tax regulation can impact the decisions you considered for establishing a trust or funding a non- profit foundation.
Resilience is a pro- active concept. It is too late for a company to decide to become resilient, if, for example, there is a sudden breach of its data security. Resilience must a planned into the company structure.
Just as in an estate plan – resilience incorporates certain strategies to plan for the ‘what ifs’ of life.
In a short ‘brief’ titled: The resilient organization…as good as it gets …(www.strategyand.pwc.com – a strategic consulting firm) “This forward-looking and self-correcting type of organization anticipates changes routinely and addresses them proactively. When it does hit a bump in the road — as all companies do — the resilient organization distinguishes itself in its response, which is immediate, thorough, and constructive.”
In previous articles I warned that an estate plan is not a legal document to be set on “auto-pilot.” Estate Planning is not a “set-it-and-forget it” strategy.
Competent and consistent reviews of your estate plan make it resilient to the forces that can impact it and disrupt your goals.
...If it has been a few years since you looked at your estate plan documents, now may be the time to take them out and review them with an eye to resilience.
Along with end of year tax planning, make an annual review of your estate planning documents. Do you need to change beneficiary designations; power of attorney or health care directives? Are you retiring? Did you get married, divorced, separated, or lose a loved one? Did you celebrate a birth in your immediate family? Did you purchase/sell a major asset; change jobs; sell your company or move to another state? Are your digital assets included in your estate plan?
Become your own chief of resilience - foresee changes and respond to them proactively.
Working to Preserve Your Wealth and Protect Your Future…in a Constantly Changing World
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