3 Ways Proper Estate Planning Can Save You Lots Of Money

Proper estate planning can save you lots of money. This ensures that your loved ones will receive the assets you like to give them, without the financial challenges that can arise from receiving these assets.

Going over the ways in which estate planning can save you lots of money, and speaking with an estate planning lawyer, will allow you to develop a proper estate plan.

What Is Estate Planning? 

Right before we can go over the three most notable ways proper estate planning can save you lots of money, we must first clarify what estate planning actually is.

The definition of estate planning is as follows: the process by which an individual – or a family, for that matter – arranges the transfer of their assets, in anticipation of their death.

Just as an example, the act of developing a will can be, and is, considered an act of estate planning. And, the same is true of developing a trust, among other legal arrangements.

If you develop an estate plan, then you develop a plan that ensures your assets are given to those whom you have chosen to give them to, in the event of your death.

3 Ways Proper Estate Planning Can Save You Lots Of Money 

01: You Can Minimize Your Loved Ones’ Tax Burden 

Right after your loved ones receive the assets you wish to give them, they will need to pay taxes on those assets, so that they can legally obtain them.

Or, at least, this would be the case, if you don’t develop an estate plan that deals with this situation.

You can develop an estate plan that relies on legal arrangements – an irrevocable trust, for example – that minimizes your loved ones’ tax burdens, thereby ensuring that they won’t need to deal with a hefty tax bill. 

02: You Can Prevent Probate 

If your estate plan does not include a trust, then your assets must go through probate. And, when your assets go through probate, a wealth of fees must be taken care of.

Outside of the fees that probate creates, the process makes your estate plan public and prevents your loved ones’ from receiving the assets you wish to give them in a timely manner, as probate often takes at least six-months. 

03: You Can Prevent Medical Bankruptcy 

A variety of requirements must be met, in order to qualify for Medicaid. You can satisfy these requirements with proper estate planning, thereby ensuring that you meet the asset/income requirements for Medicaid.

If you obtain Medicaid, then you can prevent medical bankruptcy – or, even, medical debt – while also obtaining the medical care that you need. And, this can include nursing home care, as well as other forms of long-term care. 

Speak With A Florida Estate Planning Lawyer Today 

Proper estate planning can, and will, save you, and your loved ones, lots of money in the long run. Speak with a Florida estate planning lawyer at Millhorn Elder Law Planning Group today and we will assist you in developing a proper estate plan.

Sources:

law.cornell.edu/wex/estate_planning

benefits.gov/benefit/1625