"Can I afford effective estate planning?"
This is really not the right question.
What you should ask yourself is, "Can I afford not to?"
You may be wondering if you can really afford to do effective estate planning that you know should be done. This is not the question to ask. The real question is whether you and your family can afford to do without the protection and security provided by proper planning.
Would you drive without car insurance? How would you feel without the protection afforded by liability and property coverage?
Would you like to leave your uninsured house?
Would you like to go without health insurance, knowing that large medical bills could erase you?
In the case of auto, home and health insurance, you are protecting yourself against the possibility of something happening. If an insured event occurs, your insurance covers you and the premiums you paid for the insurance are worth it.
Estate planning protects you from the possibility that you will become disabled while you are alive and against the certainty of your death someday.
So what are the protection and security measures provided by the right kind of planning?
Protect yourself if you become unfit. If you become unfit and need help managing your finances and health care, the people you want to help will ask you for the necessary legal documents to act on your behalf.
Protect your loved ones. The right kind of estate planning will protect your loved ones from:
- creditors – That they have problems with creditors now, or problems that arise in the future.
- predators – the people who would benefit after receiving an inheritance from you.
- Bad financial judgment – Sometimes our loved ones simply do not know how to manage money well.
- Loss of benefits – If you have a loved one with special needs, having the right plan will protect your ongoing benefits.
- Family feuds – Unfortunately, when your planning is not done correctly, horrible quarrels can arise between family members, even between siblings who have heard well before.
- Loss of divorce – If one of your loved ones was divorcing, would you like her ex-spouse to receive half of her inheritance? Without proper planning, this can happen.
- Stepfamilies – In families where there are children from other marriages, the appropriate estate planning will protect the involuntary disinheritance of one side of the family.
Protect your property. Good planning will protect your assets from unnecessary expenses and potential losses of creditors or expenses of your nursing home.
- Certification Fees – If your estate is subject to probate, your family will pay a much higher cost for the administration of your estate. The legal fees to pay in case of approval are calculated as a percentage of your assets, starting at 4.5%. For example, in Lucas County, the legal fees for the probate of an estate of $ 400,000 (gross value) would be $ 15,000. With good planning, this cost could be significantly reduced, resulting in savings of up to $ 11,000!
- Creditors or long-term care spend less. If you are worried about losing your savings in a retirement home, and long-term care insurance is not an option for you, the type of estate planning that is appropriate can help you protect a large portion of your assets. to preserve them during your loved ones.
You need to be concerned about whether your current estate planning is right for your current needs and goals. In our office, we offer an initial consultation at no cost or obligation. We meet with you to determine if your current planning is appropriate to your needs and goals and to recommend any changes you may have.