Inflation has hit us all in different ways – at the grocery store, at the gas station and in balance sheets. Everyone has been affected by increased prices due to inflation in every aspect of our lives, including the dynamics of our estate planning.

At Stone Oak Wealth Management we are frequently asked “Will inflation have an impact on my estate plan?” The short answer is Maybe, it all depends on your asset mix.  Inflation can have a direct impact as cost of goods increase to corporations and higher interest rates which affect us in different ways. Since inflation does not necessarily impact the economy and stock prices at the same rate, our goal is to help you make wise decisions on how to invest during times of uncertainty.

Now, post-pandemic, the pent-up demand for supplies that had been in short supply has increased, causing price spikes and interest rates to rise. This period of uncertainty can affect investor confidence, which is why we keep a sharp eye on the markets.

The Good News

Historically, some types of stocks and investments tend to perform better during periods of high inflation, and many investors see positive effects on their portfolios.  In fact, many established investors appreciate inflation.

Staying Current

When we originally created our estate plan, we knew our assets’ values. Today those values may be obsolete or affected by life events, it’s very important to review your estate plan at least every five years to ensure not only the values, but it’s relevancy.

According to Donnie Laurence, Jr., Stone Oak Wealth Management’s Managing Director, “It’s important to keep an eye on the changes in inflation and to assess your estate plan routinely. The standard rule is to review your plan every five years. However, it’s always a good idea during uncertain times to keep an eye on the value of your assets on an ongoing basis.” After all, the main purpose of estate planning is to ensure your assets are managed and safe for the benefit of your beneficiary.

Following are some strategies that we can help implement to help you minimize estate and gift taxes over time from the detrimental effects of inflation by reviewing:

  • Your estate plan thoroughly
  • The effect of tax liability
  • The diversity of the estate plan
  • Real estate investment trusts (REITs)
  • The level of liquidity
  • Your overall estate plan goals

You already know how important it is to have a solid estate plan in place to protect your assets especially during economic downturns. As your trusted wealth management advisors, we spend our time staying on top of trends, taxes, and inflation figures. We know what strategies to take and most importantly, when to take that action to ensure the security of our clients’ plans. We have the knowledge and experience to recommend targeted techniques for your consideration.

If you are ready to conduct a 5-year review of your estate plan, please schedule an appointment with us that is convenient for you.  We can discuss these strategies together, each of which have specific limitations and requirements, and not all may be appropriate for you.

In the Word

“In the case of a will, it is necessary to prove the death of the one who made it, because a will is in force only when somebody has died; it never takes effect while the one who made it is living.”

Hebrews 9:16,17

Caring for loved ones as if you were still here is your final act of stewardship.  Establishing an estate plan that is reflective of one’s inner spiritual beliefs is an impactful way to pass along wisdom to your heirs.

One of the first steps in establishing a Christian estate plan is to recognize that God as owner of all property.  We are simply stewards of property while we have it.  A Christian estate plan transfers the stewardship to your heirs while acknowledging that God retains ultimate ownership.


Sources: Broadridge Investment Management Solutions

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