Boring is the new sexy

That's the headline from Trusts & Estates magazine, normally a boring (yet highly informative) read. It seems anyone who didn't lose nearly as much money as everyone else is now exciting. I don't know if I'd go as far as "sexy," but then again, money has throughout history made people more attractive--if you happen to have any left, expect some flirtatious behavior from others. A local trust company is proud to point out it lost only 25% for its clients last year, not 40%. And my condolences for having to sell your Ferrari if you were in a hedge fund last year, as some last 90% of their value!

I think the same holds true in estate planning--a return to the fundamentals is in order, as peoples' main concern has always been making sure they're taken care of when they're disabled, their spouses are taken care of, and their family is taken care of. We attorneys and advisors often get caught up in the excitement over new and different ways to lessen taxes, but clients rightly want these only if they are part of taking care of them and their families. Someone was asking me about captive insurance companies the other day, which are a useful planning tool for some, and in my research I found far fewer of these actually exist than I would have thought. This seems true for most things--when I ask attorneys how many exotic plans they've actually done, they usually need one hand or less to count them.

That won't stop me from recommending items beyond the most fundamental for many clients, but more important is making sure the fundamental planning is in place--do you know what happens at your disability? At your spouse's disability? At your deaths? Is your family protected from creditors? From unscrupulous trustees? From spouses who don't like to work? From government entities looking for ways to cut costs by denying benefits? Are your assets in your trust to make it work? Most of the plans I review can't even get past these initial questions, so it's important to know that the basics are covered. It's not sexy, but it is reassuring at night.