Two common goals we see in estate planning are (1) ensuring assets pass to the intended beneficiaries; and (2) efficiently transferring assets to the intended recipients. While estate plans can be as unique as the individuals creating them, and there may be multiple ways to set up a plan to reach a client’s goal, estate planning is far from a fool-proof process. What may be the “easiest way” to transfer assets could lead to unintended consequences down the road. Through our experience helping clients create their estate plans and helping administer less than ideal estate plans, we’ve found these practices to be the top ten estate planning mistakes.

One of the first conversations I have with clients is the difference between using a will and a trust. For most clients, the decision between a will and a trust is about personal preference and which benefits appeal to them most.

When should I think about my estate plan? As a new attorney, I sometimes even find myself asking this question. When many people think about estate plans, they think of appointing guardians for their kids and what treasured personal items they want their family members to have. While these are significant parts of estate planning for many people, there are lots of other important estate planning questions we should consider throughout our lives.

One question we should all start considering as young adults and continue to reflect on as we age is "Who do I want to help care for me if something happens to my health?" Financial power of attorney, healthcare power of attorney, and HIPAA releases are all documents we should consider having throughout our lives. As much as we don't like to think about bad things happening to us, it's important to consider what will happen if we can't make decisions for ourselves. Together, these documents help ensure we're cared for if we're unable to do so for a period of time.

In August 2020, the SEC amended its definition of “accredited investor,” expanding the list of individuals eligible to invest in companies via private offerings under Regulation D.

The “accredited investor” definition is important for companies who intend to file safe harbor exemptions for private offerings under Regulation D, including under Rules 506(b) and 506(c). For more information on these exemptions, please see our previous blog post on this topic. Until the recent amendment, an individual did not qualify as an “accredited investor” unless that individual had either (i) an income exceeding $200,000 in the two most recent years (or $300,000 jointly with a spouse); or (ii) had an individual net worth (or joint net worth with spouse) exceeding $1,000,000 at the time of the purchase (excluding the value of the individual’s private residence).