Many of our clients pursue a sustainable lifestyle that attempts to reduce an individual's or society's use of the Earth's natural resources and his/her own resources.  Reducing their carbon footprint by altering methods of transportation, energy consumption and diet are common choices.  They believe in the importance of the natural balance of the Earth and are respectful of humanity's symbiotic relationship with the Earth's natural ecology and cycles.  No lifestyle choice, however, matches the completion of the ultimate natural cycle: death. 

“Sustainable” can be defined as using a resource so that the resource is not depleted or permanently damaged.  The keys to sustainable estate planning are wealth management and estate preparation.  No personal choice regarding sustainability has more tangible importance than sustainable wealth and estate planning.  If the wealth management plans you’ve made are not sustainable, your retirement funds may be depleted before you die.  Proper estate planning can ease your family’s transition to their next cycle of life when your cycle is complete. 

Photo credit: Ben Heine

Investing and wealth management can have two sustainable components: Nice to have and must have. 

1) Nice to have:  The placement of ones retirement funds and resources in a way that does not contradict ones lifestyle choices, or more positively, investing in a way that reflects ones desire to make a difference in our world.  A wealth management firm called Sustainable Investing (no affiliation with me) states:  “In its broadest sense, sustainable investing means including environmental and social factors in investment decisions. Doing so, through a variety of styles, can help investors meet their financial goals and bring about a more sustainable economy.”

2) Must have: prudent planning and investing so one does not outlive one’s personal resources.  This financial planning is essential for ones lifestyle to be truly sustainable.  A trusted financial partner that meets your needs is invaluable and is a very personal selection.  But the financial planning for this “must have” is extensive and should include tax planning, health care, retirement funding and account management, insurance reviews and investment advice. 

Estate planning is making sure that all of your assets — your money, property, insurance proceeds and personal belongings — go to the individuals and organizations that are most important to you.  Sustainable estate planning is making the transition for ones family as smooth as possible.  Unfortunately, many people spend more time planning a single family vacation than planning for the inevitable end of life paperwork. 

Sustainable estate planning, done while one is still healthly, helps to ensure that your property will go to the people you want it to go to, in the way you want it to, at the times you want it to.  This planning may result in savings in taxes, court costs and attorneys' fees, but it almost always helps your family and friends avoid the bureaucracy and financial confusion that often occurs after death. Through sustainable estate planning there are legitimate planning techniques available to minimize this risk and to protect assets.

Besides reducing estate and income taxes, sustainable estate planning techniques can produce other benefits. They make it easier to administer the estate if death is preceded by a period of incapacitation. They allow people to spell out in advance their wishes about being kept alive with artificial life-support systems. And, to a limited extent, it's also possible to use some strategies to increase the size of the estate.