Is it Time to Rethink your Estate Plan?
I lived in San Francisco during the "Dot-Com" Bubble and Bust from 1998 to 2002--and even though that downturn was real and painful for all of us living in the Bay Area (and all those heavily invested in tech stocks)--it didn't affect everyone across the country as much as the present financial downturn.
Ever since that tech meltdown, I became interested in bubbles, how are they created and why. So when I recently read more of Robert Shiller's thoughts, a Yale professor who is given some credit for predicting both the tech and housing flameouts with unnerving accuracy I was interested to learn more about him, see the recent article about home prices in the U.S.
On my list of books to read soon are the following books by Mr. Shiller, one published just before the tech meltdown and the other before the sub-prime mess morphed into a full-fledged global meltdown: "Irrational Exuberance" and "The Subprime Solution: How Today's Global Financial Crisis Happened and What to Do About It," respectively speaking.
As bubbles tend to inflate our assets and the ensuing busts tend to painfully deflate our assets, during these challenging economic times it is good idea to re-evaluate your estate plan and see if you are employing the correct strategies to leave a legacy you want. In the recent article by Money Magazine it was stated that "according to estimates by the Federal Reserve, average household net worth dropped nearly 23% from a survey period starting in May 2007 to October 2008". I would estimate that percentage is higher now, 8 months later.
So what does this mean for your estate plan? The article provides some great ideas but the main point is that this might be a good time to rethink, re-evaluate and talk to your estate planning attorney to ensure your legacy and wishes are protected.
