Breaking Down the “Breakdown” in Your Estate Plan

Five Things You Should Know

1. Equity Markets – moved slightly higher this week with U.S. stocks (S&P 500) up 0.24% and international stocks (EAFE) rising 0.12% 
2. Fixed Income Markets – finished mixed with investment-grade bonds (AGG) down -0.16% and high yield bonds (JNK) rising 0.46% 
3. U.S. Inflows – A recent analysis from the International Monetary Fund (IMF) showed that the United States has taken in 1/3rd of all global investment inflows since the covid pandemic began. Despite calls across the globe to diversify out of the dollar, higher interest rates and global uncertainty has seen the U.S. become a preferred destination for foreign investment. 
4. China Housing Slump – Years of attempts to re-stoke China’s struggling housing market have been futile as the slump deepened in May, with many calling for additional government intervention to pump cash and credit into the economy. Recent data showed declines in both real estate investment and home prices, coupled with weaker-than-expected industrial production growth. 
5. Key Insight: [VIDEO] This week we are going to continue our conversation on estate planning, specifically around trusts and trustees with local independent trustee CEO Greg Bowman. [ARTICLE] We’ve defined what and given an overview of the fundamentals of estate planning and now we take a look at the foundation of an effective estate plan. 

 Breaking down the “breakdown” in your estate plan: 

We’ve spoken frequently in 2024 about estate planning, and based on inquiries we’re getting from clients, it continues to be top of mind for many clients. To date, we’ve covered the concept of what is estate planning, the basics of estate planning that affect everyone, and more advanced planning strategies. Ultimately, if we look under the hood at the main priorities within any estate plan it boils down to three main ideas: 

1. Ensuring your assets get distributed as desired. 
2. Someone else has the authority to make decisions on your behalf if you are unable to do so. 
3. Your beneficiaries are clearly defined. 

The question I ask when looking these 3 objectives is what is the connection here? Much like trust being the foundation of any solid relationship, what is the foundation of any effective estate plan? What are these documents being created for? Ultimately, I’d argue, the answer is communication. Communicating your wishes and desires for the wealth you’ve built is of the utmost importance if you seek to hit the target of the above ideas. Communication breakdown, based on my almost 20 years in this business, has consistently been one of the major common denominators for when an effective estate planning strategy gets completely derailed. 

We should look at communication on a few levels to increase the probability of your estate planning strategy being carried out smoothly. First, communicate through those documents you’ve created with your attorney. Spelling out, sometimes in painful detail, your wishes with each underlying asset you’ve been able to accumulate. Are there trusts involved with your estate plan? Do you have powers of attorney outlined? Have the assets been appropriately titled based on the documents created? 

The second level of communication, and the one that can be more difficult, is discussing your wishes and plan with your family. While not every family will have this luxury, communicating some baseline knowledge of your wishes to your heirs can have massive impact on the outcome of your plan. The intentions and wishes of the deceased, is something that, if you are unwilling to communicate to them prior to your passing; will be discussed on your behalf after you are gone. So, if you can, take the time now. Make it a pleasant experience with your loved ones. Have the conversation over a planned dinner, in our offices (we do this all the time), or in some other venue. No matter the location, don’t put it off. Have the conversation. It will not only serve your own pursuit of an effective estate plan being carried out, but it will also give your loved one’s the confidence and clarity they will need to carry out your wishes while they are simultaneously navigating the grief of losing you. You would be giving them one of the greatest gifts in their lifetime. 

To your health and living well-thy 

Dave and the team at TEN 

Data, Just the Data 

• U.S. Jobless Claims – eased by 5,000 to 238,000 on the second week of June. This was above market expectations of 235,000 and marked the second-highest reading since August of 2023. 
• U.S. MBA Mortgage Applications – rose by 0.9% in the second week of June. This extended the 15.6% surge from the previous week which was the sharpest weekly increase since January of 2023. 
• U.S. Retail Sales – edged up a 0.1% MoM in May of 2024. This followed a downwardly revised 0.2% decrease in April and landed below forecasts of a 0.2%, in another sign consumer sentiment is cooling. 
• U.K. Retail Sales – soared 2.9% MoM in May of 2024. Recovering from an upwardly revised 1.8% decline in April, this was much higher than the forecasted 1.5% gain, and is the biggest increase in four months. 

• Eurozone Industrial Production – fell to 50.8 in June of 2024 from 52.2 in the previous month. This was significantly below market expectations of 52.5,