Investment Strategy Changes that Warrant Estate Plan Changes

Many of America’s wealthier taxpayers are making significant changes to their investment plans as a result of the uncertainty regarding the fate of the Bush tax cuts as the year draws to a close.

According to a poll conducted by Spectrem Group, alternative investments are making up a growing portion of the investment portfolios of America’s wealthiest taxpayers. The poll asked about 200 individuals with net worth over $25 million if they were making any changes as a result of the tax uncertainty.  A full 47% of respondent households owned hedge funds and 45% owned venture capital. Stocks and bonds, including restricted stock and options, accounted for 18% of their total investments, down from 20% in 2010 and 21% in 2007. These changes reflect the concern about what will happen to the Bush tax cuts say experts.

If you make any significant changes to your investment portfolio, you may need to make changes to your estate plan as well. Minor shifts or changes may not warrant a review of your estate plan, but major additions or deletions from your assets certainly call for a review of your estate plan. In fact, keeping your financial advisor in the loop regarding your estate plan and vice versa is always a good idea. By the same token, reviewing your estate plan every few years is something that you should do even if you haven’t made any significant changes to your investment plan.