You've spent decades building your wealth, climbing the corporate ladder in Manhattan, or perhaps building a successful practice on Park Avenue. Your investment portfolio is diversified, your retirement accounts are well-funded, and your children are set for the best education money can buy. But what happens to all of this when you're gone?

If you just felt a twinge of uncertainty, you're not alone. As a certified financial planner working with New York City's high-net-worth individuals, I've seen firsthand how even the most financially savvy professionals can make critical mistakes in estate planning. Commented

Estate planning isn't just about writing a will. It's about creating a comprehensive strategy that protects your legacy, minimizes tax burdens, and ensures your wishes are carried out exactly as you wish. In a high-stakes environment like New York City, where state and local taxes can take a significant bite out of your estate, proper planning isn't just recommended—it's essential.

This article will explore the most common estate planning mistakes I've encountered among NYC's high-net-worth community and provide actionable strategies to correct them. Whether you're a surgeon on the Upper East Side, a hedge fund manager in Tribeca, or a corporate attorney in Midtown, this information is crucial for preserving the wealth you've worked so hard to build.

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Mistake #1: Failing to Create an Estate Plan

This fundamental oversight is surprisingly common, even among NYC's most financially sophisticated professionals.

The Harsh Reality

Let's be brutally honest: none of us are getting out of here alive. Even here in New York City, I've seen brilliant financial professionals who structure billion-dollar deals by day, but haven't applied those same skills to protecting their own family's future. It's a common disconnect that affects even the most financially prudent among us.

Without a plan, New York State decides what happens to your assets—not you. And unfortunately, the state's intestacy laws won't account for your unique family dynamics or specific wishes.

The NYC Factor

New York City's high cost of living means you likely have substantial assets—real estate, investment accounts, art collections, or other valuables. Without proper planning, these assets could be tied up in probate court for years, costing your heirs time, money, and unnecessary stress.

Manhattan real estate alone can create complex estate issues. That co-op on Central Park West or condo in Hudson Yards? The co-op board might have specific requirements for transfers after death, and without proper planning, your heirs could face significant challenges.

The Solution

Create a comprehensive estate plan now. This includes:

• A will that clearly states your wishes
• A durable power of attorney
• Healthcare proxy and living will
• Potentially trusts, depending on your specific situation

Working with an attorney specializing in New York estate law is non-negotiable for high-net-worth individuals in NYC. Generic online templates simply won't cut it for complex estates in this jurisdiction.

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Mistake #2: Not Updating Your Estate Plan Regularly

I come across outdated estate plans all too frequently when working with busy New York professionals.

Life Changes, So Should Your Plan

I had a client—let's call him Michael—who created a detailed estate plan when his first child was born. Fifteen years and two additional children later, his plan still only mentioned his firstborn. His second marriage? Not reflected. His new business venture? Not included. His vacation home in the Hamptons? Completely absent from his documents.

Together, we updated his documents to include provisions for all three children, created a QTIP trust to balance the needs of his current spouse and child from his previous marriage, and incorporated his business succession wishes. And most importantly, we established a biannual review process.

Life moves quickly in New York City. Careers advance, relationships change, families grow, and assets accumulate. Your estate plan needs to keep pace. Failing to update your plan can lead to unintended beneficiaries, unnecessary taxes, and potential legal disputes. Regular updates are crucial to ensure your plan accurately reflects your current circumstances and wishes.

When to Update Your Plan

Your estate plan should be reviewed and potentially updated after any of these events:

• Marriage, divorce, or remarriage
• Birth or adoption of children or grandchildren
• Death of a beneficiary or executor
• Significant changes in assets or liabilities
• Purchase or sale of a business
• Relocation to or from New York

The Solution

Schedule regular reviews of your estate plan, ideally every 3-5 years, or immediately following any major life event. This discipline is crucial in the fast-paced NYC environment, where fortunes can change rapidly.

Many of my clients find coordinating these reviews with their annual financial planning meetings helpful. This creates a regular checkpoint to ensure all aspects of their financial life remain aligned with their current goals and circumstances.

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Mistake #3: Neglecting Transfer-on-Death (TOD) Designations

This simple but powerful estate planning tool is often overlooked, leading to unnecessary complications for heirs.

The Overlooked Simplicity

I once worked with a prominent surgeon who had meticulously planned his estate with complex trusts and detailed instructions—yet his six-figure checking accounts had no Transfer-on-Death (TOD) designation. Despite his thorough planning in other areas, these accounts would still have gone through probate.

TOD designations allow assets to pass directly to named beneficiaries without going through probate. This simple step can save your heirs significant time and money, especially in New York, where probate can be particularly lengthy and expensive.

What Assets Need TOD Designations?

• Bank accounts (checking, savings, CDs)
• Individual investment accounts (not retirement accounts, which have beneficiary designations)
• Brokerage accounts
• In some cases, even vehicles and certain securities

The NYC Advantage

In a city where legal fees can reach stratospheric levels, avoiding probate through proper TOD designations can save tens of thousands of dollars. Plus, your heirs gain immediate access to funds, which can be crucial for managing expenses in America's most expensive city.

The Solution

Review all your financial accounts and ensure appropriate TOD designations are in place. Coordinate these designations with your overall estate plan to ensure they don't contradict provisions in your will or trusts.

Remember: TOD designations supersede instructions in your will, so alignment is essential.

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Mistake #4: Inadequate Estate Tax Planning

For my high-net-worth clients in Manhattan, proper tax planning can save millions in unnecessary NYC estate taxes.

The Triple Tax Threat

New York City's high-net-worth individuals face a perfect storm of estate taxes:

1. Federal estate tax (40% on estates exceeding $13.99 million in 2025)
2. New York State estate tax (up to 16% on estates exceeding $7.16 million in 2025)
3. Potential income tax issues for heirs on inherited retirement accounts

What's worse, New York has an estate tax "cliff." If your estate exceeds the exemption amount by more than 5%, you'll owe tax on the entire estate, not just the excess. This can cost your heirs millions.

Effective Tax Planning Strategies

For high-net-worth New Yorkers, consider:

• Lifetime gifting strategies to reduce estate size
• Irrevocable Life Insurance Trusts (ILITs) to keep insurance proceeds outside your estate
• Qualified Personal Residence Trusts (QPRTs) for valuable NYC real estate
• Charitable strategies that provide tax benefits while supporting causes you care about
• Family Limited Partnerships or LLCs for business interests
• Grantor Retained Annuity Trusts (GRATs) for appreciating assets

The Solution

Work with professionals who understand both federal and New York-specific estate tax laws. Coordinate with a financial advisor, estate attorney, and CPA to implement cohesive strategies that minimize tax exposure while accomplishing your legacy goals.

Remember: Tax laws change frequently. The 2025 sunset of current federal estate tax provisions could significantly impact your planning needs.

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Mistake #5: Relying on Wills Only

While having a will is essential, many of my NYC clients require more sophisticated tools to fully protect their assets and legacy.

Beyond Basic Wills

"I have a will, so I'm covered," said David, a successful entrepreneur with a $20 million estate, two children from his first marriage, a current spouse, and a child with special needs. Unfortunately, a standalone will was nowhere near enough for his situation.

A will is just the beginning for high-net-worth individuals in New York. Trusts offer advantages that wills cannot provide, including:

• Probate avoidance
• Privacy (unlike wills, which become public records)
• Protection from creditors, in many cases
• Control over how and when heirs receive assets
• Potential tax advantages

Who Needs a Trust Instead of a Will?

In my experience, these situations virtually always warrant trust planning:

• Estates likely to exceed New York's $7.16 million exemption
• Blended families with children from multiple marriages
• Individuals with minor children or heirs with special needs
• Business owners concerned about succession planning
• Anyone owning property in multiple states
• Individuals concerned about privacy
• Those wanting to control distributions to heirs over time

Types of Trusts for NYC High-Net-Worth Individuals

• Revocable Living Trusts
• Irrevocable Life Insurance Trusts (ILITs)
• Qualified Personal Residence Trusts (QPRTs)
• Spousal Lifetime Access Trusts (SLATs)
• Charitable Remainder Trusts (CRTs)
• Special Needs Trusts
• Dynasty Trusts for multi-generational wealth transfer

The Solution

Consult with an estate planning attorney who specializes in high-net-worth clients in New York. They can help determine which trust structures align with your specific situation and goals.

The right trust structure depends on your unique circumstances, including family dynamics, asset composition, and legacy objectives.

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Mistake #6: Choosing the Wrong Executor or Trustee

Selecting the right people to handle your estate is just as important as the estate plan itself.

The Burden of Responsibility

I've seen families torn apart by poor executor or trustee choices. I’ve seen situations where the oldest child was appointed the executor, assuming age equated to capability. The result? Years of mismanagement, family conflict, and unnecessary losses.

Being an executor or trustee isn't merely an honorary title—it's a demanding job that requires financial acumen, organizational skills, impartiality, and a significant time commitment.

The New York Complication

New York's probate process is notoriously complex. Executors must navigate the Surrogate's Court system, which can be particularly challenging in the five boroughs. Additionally, New York has specific requirements for executors, including bonding requirements in some cases.

Who Should You Choose?

Consider these factors when selecting executors and trustees:

• Financial capability and organizational skills
• Impartiality and ability to manage family dynamics
• Geographic proximity (particularly important for NYC real estate)
• Time availability
• Understanding of your values and wishes
• Willingness to serve in this capacity

The Professional Alternative

For substantial estates, consider professional fiduciaries:

• Trust companies
• Bank trust departments
• Professional executor services

While they charge fees, professional fiduciaries bring expertise, impartiality, and continuity that family members often cannot provide.

The Solution

Have frank conversations with potential executors and trustees before naming them in your documents. Ensure they understand the responsibilities and are willing to serve. Consider naming contingent executors and trustees as backups.

For larger estates, a combination of family members and professional fiduciaries often works well, providing both personal understanding and professional expertise.

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Mistake #7: Neglecting Digital Assets and Intellectual Property

In today's digital world, significant portions of your estate may exist only electronically.

The Invisible Estate

From cryptocurrency to valuable domain names and social media accounts to digital photos, these assets require specific planning.

For NYC professionals, intellectual property often represents substantial value. Patents, copyrights, trademarks, and creative works need specialized estate planning approaches.

The Access Problem

Without proper planning, your heirs may be unable to access your digital assets. Password managers, two-factor authentication, and terms of service agreements can create impossible barriers after your death.

The Solution

Create a digital estate plan that includes:

• Inventory of all digital assets
• Secure storage of access information
• Specific instructions for each digital asset
• Powers of attorney that explicitly include digital asset management
• Consideration of digital asset provisions in your will and trusts

For intellectual property, consult with an attorney specializing in IP law to ensure proper succession planning.

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Mistake #8: Failing to Plan for Incapacity

Many of my most successful clients have detailed plans for what happens after death but overlook the very real possibility of becoming incapacitated.

The Overlooked Risk

Estate planning isn't just about death—it's also about incapacity. Yet many high-achieving New Yorkers ignore this possibility, leaving themselves vulnerable to court-appointed guardianship if they become unable to manage their affairs.

The Guardianship Process

New York's guardianship proceedings under Article 81 can be expensive, public, and stressful for families. The court may appoint someone you wouldn't have chosen to make crucial decisions about your care and finances.

Essential Incapacity Planning Documents

• Durable Power of Attorney (with specific provisions for New York)
• Healthcare Proxy
• Living Will
• HIPAA Authorization Forms
• Revocable Living Trust with incapacity provisions

The Solution

Create comprehensive incapacity documents that reflect your wishes. Review these regularly, as New York periodically updates its statutory forms.

For high-net-worth individuals, consider additional provisions in your power of attorney that address business interests, complex investments, and digital assets.

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Mistake #9: Disregarding International Considerations

New York's global citizens face unique challenges when their wealth, property, or heirs cross international borders.

The Global New Yorker

Many of NYC's high-net-worth individuals have international connections—foreign citizenship, overseas properties, multinational businesses, or beneficiaries living abroad. These factors complicate estate planning significantly.

Potential Pitfalls

• Exposure to multiple countries' estate and inheritance taxes
• Forced heirship laws in certain countries that may override your wishes
• Currency exchange issues
• International property ownership complications
• Cross-border probate challenges

The Solution

If you have international considerations, work with advisors experienced in international estate planning. Consider:

• Separate wills for assets in different countries
• International estate planning trusts
• Specialized structures for foreign property ownership
• Tax treaties that may reduce double taxation

Mistake #10: Overlooking Charitable Giving Opportunities

Many successful New Yorkers intend to support charitable causes but fail to integrate philanthropy into their estate plans effectively. This is both a missed opportunity for tax savings and creating a lasting legacy.

Strategic Charitable Planning

For high-net-worth individuals, charitable giving can be structured to:

• Reduce estate taxes
• Provide income during your lifetime
• Create a family legacy
• Support endeavors that matter to you
• Involve the next generation in philanthropy

Effective Charitable Vehicles

• Donor-Advised Funds
• Private Foundations
• Charitable Remainder Trusts
• Charitable Lead Trusts
• Direct bequests to charities

The Solution

Integrate charitable planning into your overall estate strategy. Consider involving family members in philanthropic decisions to pass on not just wealth but also values.

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Building a Comprehensive Estate Plan in NYC

Estate planning for high-net-worth New Yorkers is not a one-time event but an ongoing process that requires regular attention and updates. The mistakes outlined here represent some of the pitfalls I've encountered in my practice.

The costs of inadequate planning are substantial—financial losses through unnecessary taxes, family conflict, probate delays, and perhaps most importantly, the loss of control over your legacy.

Proper estate planning allows you to:

• Protect your loved ones
• Preserve your wealth
• Minimize taxes
• Support causes you care about
• Leave a meaningful legacy

Professional guidance is essential in a city like New York, where complexity is the norm and the stakes are high. Your estate plan should be as sophisticated and thoughtful as the career and life you've built.

Protect Your Legacy Today

If reading this has made you realize your estate plan needs attention, don't wait. The best time to address these issues is now when you have options and can make clear decisions.

At Servet Wealth Management, we understand the unique challenges facing high-net-worth individuals in New York City. Our team works closely with estate planning attorneys, CPAs, and other professionals to create comprehensive strategies that protect your wealth and secure your legacy.

Don’t let procrastination or uncertainty put your legacy at risk. To see if we can help you create or update your estate plan, click here to schedule a conversation today. Let's work together to ensure your wealth continues to benefit those you love for generations to come.

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