Bill Sanderson: Long-Lived Rich Risk Relinquishing Too Much in Estate Planning

May 1, 2019

Can wealthy individuals outlive estate planning and end up with too little money for themselves?

Definitely, said Bill Sanderson, co-chair of McGuireWoods’ private wealth services group, in an interview with Bloomberg Tax. Transferring assets to beneficiaries at too brisk a pace could force long-lived people to settle for a diminished lifestyle late in life.

With longer average U.S. life spans, situations could arise where “the kids are flying first class and the parents are stuck in the middle seat in coach,” Sanderson said. “Because clients are living longer, I often find myself advocating for less tax planning,” he said.

As an example, Sanderson cited an older wealthy couple who sought a “reverse estate plan” —  repatriating assets from trusts and heirs because the couple had “effectively been pushed out of their own wealth.”