It can be challenging to think of a time when you're not around and spending time with your loved ones. You're not alone if you feel overwhelmed when considering creating a will or trust for your assets. According to Think Advisor, only around 26% of Americans have an estate plan.
Learning about elder law and estate planning doesn't have to be an arduous task. Taking the time to develop a plan guarantees that your assets are distributed and managed according to your wishes. Failing to do so can result in your property and money going to those you may not want to have.
This blog will cover the basics of senior estate planning. We'll go over what's included in most estate plans so you know how to prepare for the future.
There isn't a one-size-fits-all approach when it comes to retirement planning. How you move forward with your property and assets depends on your unique circumstances. Learning more about the basics of elder law and estate planning will allow you to make educated decisions about your and your loved ones' future.
It's essential to create a team of experienced individuals to help you with estate planning. Some of the people you'll want on your team include:
You may want to include a trusted person that you know will have your best interests at heart. This can include a friend, family member, or member of your care team.
Every person on your estate planning team plays an important role in the process. They can provide you with invaluable financial and legal advice. You all will work together to create a plan that ensures your property and assets are distributed to your desired beneficiaries.
According to Illinois state law, your estate will be passed to your closest family members or the state if you die without a will or trust in place. This can be devastating and potentially problematic if you're not married to your partner. It also poses challenges if you want your assets to be distributed to a friend or nonrelative.
Having a will and/or trust in place will protect your assets and ensure they're distributed to the right parties.
A will is a document that includes your direct wishes for your assets and property. You can also include who you want to care for your dependents after you've passed. Some of the reasons you should have a will include:
A testamentary will is the most common type of will. Once the document is prepared, it's signed by you in the presence of witnesses. You can have the will prepared by estate attorneys or create it yourself.
With a trust, the trustor gives the trustee the ability to hold assets and property for the beneficiary. Trusts fall into two main categories:
Irrevocable trusts can't go through major changes while the main party is still alive. The main party gives up control and ownership of their assets even while they're still alive.
Revocable trusts operate a little bit differently. The main party can make changes at any time, including terminating the trust. They also have access to the assets within the trust during their lifetime.
An advance directive outlines specific guidance on healthcare services and medical treatments if you're incapacitated. It states how you want medical decisions made about you if you can no longer make them on your behalf.
Keep in mind that this document doesn't have any say on your money or financial matters. While it doesn't directly relate to your assets, it's still a good document to create when estate planning.
Estate taxes refer to federal taxes on certain assets. This can include:
Your beneficiaries will be responsible for paying estate taxes once they receive their inheritance. These taxes are usually due nine months after you pass away.
There are steps you can take to minimize or plan for estate taxes. A few things you can do include:
Probate court is the legal process of validating your will in the court system. Some of the disadvantages of probate include:
Probate judges may make decisions you wouldn't agree to if you were still alive. Thankfully, there are a few ways you can prevent your estate from having to go through probate. A few of these include:
You may already be in a long-term care community or have plans to move into one in the future. Wherever you are in life, it's important to prepare for different scenarios. One of these scenarios may include moving into a senior living community.
Senior living communities offer varying levels of care based on your needs and goals. It's important to research different communities in your area to see which ones offer amenities that you're interested in. You may want to research long-term care insurance to help mitigate your out-of-pocket costs.
Navigating the world of elder law and estate planning doesn't have to be complicated and overwhelming. Learning the basics of wills and trusts strategies is one of the first steps to get started. Finding an agency that will help you with senior legal services will ensure your assets are protected.
At Liberty Court, we put the health and happiness of our residents at the forefront. Our transportation services will ensure you make it to your estate planning appointments on time. Contact us to schedule a tour of our senior living community.