Future of Estate Planning and Investment Strategies

The Wealth Strategies Journal hosted a panel discussion on February 23 in Washington D.C. The panel included prominent tax professionals and estate planning attorneys who made predictions for estate planning and investment strategies for 2011, 2012, and beyond. The panel included David Greene, Vice President and Financial Adviser at Bernstein; Tom Cholis, Managing Director of Chevy Chase Wealth Management; and Jeanne Newlon, an estate planning lawyer and Partner at Venable LLP in Washington, D.C. Lew Saret, the Co-General Editor of the Wealth Strategies Journal, moderated the panel. A re-cap of the panel’s discussion is below:

Though the temporary nature of the 2010 Tax Act creates uncertainty for the future of estate planning professionals, estate planning attorneys should encourage clients to utilize the $5 million gift and GST tax exemptions while it is still possible. If the estate tax is repealed in 2012, the demand for estate tax planning attorneys will likely decrease, though clients will still turn to estate planning attorneys to establish trusts.

However, Saret predicts that the need for estate planning attorneys may be replaced by websites with avatars that ask clients estate planning questions and then provide them with the necessary documents. In contrast, Cholis predicts that the profession will not likely witness a profound change and that it may even see an increase in business.

Greene discussed the municipal bond market, advising states and municipalities to conduct accurate credit research on each municipality owned in its portfolio. Greene predicts that investors who focus on high credit quality and precise research will find that their municipal bonds will continue to be a significant portfolio component.

Greene also observes that, though the potential for future inflation is unknown, clients with inflation-linked liabilities who spend from portfolios should, as a precaution, include inflation-protected bonds and real estate assets in their portfolios. Greene advises that the unstable nature of gold during times of inflation makes it a poor choice for an inflation-protected asset.

Though the future holds many uncertainties when it comes to estate planning and investment plans, taking necessary precautions and making intelligent predictions may be the best way to prepare for these uncertain times.

See Trevor Kosmo, Wealth Strategies Journal Hosts Lively Panel Discussion at Bernstein Global Wealth Management, Wealth Strategies Journal, Mar. 25, 2011.