DIVERSIFY. No doubt, you already diversify your investments and have an eye on counterparty concentration risks in your portfolio. So why should you want to buy a life insurance policy or trust from your custodian bank? Because it's convenient? It will only be advantageous for the bank since it will make it more difficult for you to leave them for another custodian. You may also want to diversify with tools such as trusts, partnerships, holding companies, and life insurance policies for different assets. After all, we all know what happens if we put all our eggs in one basket.
KEEP IMPLEMENTATION SIMPLE. It may sound obvious, but simple works, while complicated remains complicated throughout the entire life-cycle. If your needs are clearly defined from the outset, you should maintain a strong focus on your wealth planning strategy. With that in mind, clear and straightforward dispositions will be understood when enforcement is due. Most of the professionals involved in prior stages may not be around anymore, and thus you want to make sure that those who are in charge then implement your decisions and wishes correctly. Simplicity will help in those circumstances.
CONSIDER THE WORK AS IN PROGRESS. Life is full of events, and that's why you should see wealth planning as a work in progress. With the above-outlined steps, you should have a set-up in place that gives you peace of mind, covers your most essential needs, and is ready for straightforward execution. Make sure to schedule stress testing, in particular, when things develop and change over time. You should then assess whether you need to adapt your set-up or implement further measures. You can think in scenarios, and if there is one that worries you, then you should act.