Estate planning can be a real headache if you are doing it alone and without any help.
Here are the top five tips for estate planning.
Leave Money to a Trust
Do not leave your money to your children. If you leave your money to your children, they could lose it. They could get divorced, they could declare bankruptcy or they could cause a car accident.
All of this will cause you to lose your money and that is not good planning. A trust can protect your money so that your children don’t lose it because of a lawsuit or bankruptcy.
Plan for Disability
You are ten times more likely to be incapacitated in the next year than you are to pass away. By having a properly drafted medical and financial power of attorney, you can save your family a great deal of time, money, and energy by having everything in place.
Make sure that you plan for the possibility that you have a child or grandchild who is disabled. By having special needs trust provisioned inside of your revocable living trust. You can help make sure that your children can keep their inheritance and qualify for government benefits.
Protect Your Property from Lawsuits
America is one of the most litigious societies in the world. There are millions of lawsuits filed every single year, there are billions of dollars paid out in judgments every few days.
By some statistics, you have about a one in three chance of being sued at some point in your life. By creating an asset protection trust you can protect your property from lawsuits.
Plan for Your Long-term Care.
The average cost for one month stay in a nursing home runs between $5 and $10,000 per month. Many people will see their estates dwindle, some will even see their estates completely wiped out because of the rising cost of long-term care.
By planning, you can make sure that your assets get passed to your family as you could order and not the government or some health care provider.
Speak With a Professional.
Nowadays, there’s a variety of online and do-it-yourself resources available for individuals looking to create an estate plan. There are far too many families that have had to spend thousands of dollars to clean up a mess, which they could have easily avoided, or their parents just saw the proper guidance.
An ounce of prevention is worth a pound of cure and that is certainly true when it comes to estate planning.