Different people have different estate planning priorities. For some high net worth individuals, taxation would be at the top of the list. The estate tax be applicable on asset transfers that exceed $5.43 million, and it carries a hefty 40 percent rate.
Of course, most people are not going to be in this financial stratosphere, so they have different estate planning priorities. In this post, we will look at three different concerns that people often have.
Asset Control
Many people who look into the subject learn that a will must be admitted to probate after the testator’s passing. This is a time-consuming and potentially expensive legal process.
Trusts can facilitate asset transfers outside of probate, but many people are concerned about losing control of assets that they convey into a trust. In fact, with a revocable living trust, you would maintain control of the assets throughout your life. As the creator or grantor of the trust, you can also act as the trustee and manage the activities of the trust.
Since the trust can be revoked, you can change your mind and dissolve the trust if you ever choose to, so the control is absolute.
If you have a living trust, the trustee that you name in the trust agreement would be able to distribute assets to the beneficiaries after your passing outside of probate.
Family Harmony
Family harmony is another subtle concern that many people have. Personal feelings can enter the picture when assets are being distributed, and this can be disconcerting when you are planning your estate.
Individuals who want to maintain the peace often go the extra mile to make sure that their decisions do not cause acrimony among the surviving family members.
Quality Living Assistance
People who are preparing themselves for the eventualities of aging invariably find out that most seniors will need long-term care eventually. Medicare does not pay for living assistance, and nursing homes and assisted living communities are very expensive.
Medicaid is a government program that will pick up the tab for nursing home care. Many people give assets to their loved ones before they apply, because Medicaid is only available to people who have very limited financial resources.
Since Medicaid is a need-based program, people sometimes assume that they will get substandard care if they use Medicaid to pay for living assistance. In reality, if you do your research, you can receive quality care even if you are enrolled in the Medicaid program.
Schedule a Free Consultation
We have looked at three subtle estate planning priorities in this blog post, but you may have others. If you would like to discuss your unique personal situation with a licensed professional, feel free to contact us through this page to set up a no obligation consultation: Grand Forks ND Estate Planning Attorneys.
- Top 5 Medicaid Planning Tips - February 3, 2021
- Do I Need a Living Will? - January 28, 2021
- When Does a Trust Terminate? - January 26, 2021
