For many people, a simple will seems like enough of an estate plan to protect their interests and their loved ones. While that may be the case, the estate planning process can be much more intricate when complex distribution schemes, protection from creditors or tax savings are desired. That’s why as you prepare to create your estate plan, it’s imperative to carefully consider the facts of your situation and how they may necessitate a change in your approach.
But what specific issues do you need to take into account as you build your estate plan? There are several, so let’s look at some of them so that you have a better idea of how to address the estate planning that awaits you.
Key considerations when entering the estate planning process
There’s certainly a lot to think about as you prepare to estate plan. Here are some key issues that you’ll want to pay particularly close attention to so that you can develop the estate plan that suits your needs:
- You have children: If you have children, then there are several issues that you’ll want to address in your estate plan. For example, you’ll probably want to specify who will serve as your children’s guardian if you and the other parent pass away. You’ll also want to ensure that any assets they inherited are properly managed. Therefore, you might want to create a trust that’s managed by someone you trust.
- You have a loved one with special needs: If your loved one requires special medical care, then you’re probably afraid of how they’ll manage when you’re gone. Fortunately, you can utilize a special needs trust to help support them without affecting their ability to qualify for Medicaid. This trust can provide broad financial relief, too. This flexibility is a huge benefit that draws many to use this type of trust.
- You’re in a blended family: If you pass away without an estate plan, then there’s a good chance that your spouse’s children from another relationship will end up inheriting some of your assets at some point in time. That might be okay with you, but if it’s not, then you need to develop an asset distribution plan that ensures your resources are diverted to those you want to inherit.
- Your potential need for long-term care: There’s a significant chance that you’ll need long-term care at some point in your life. This care can be expensive, too, leaving your estate drained if you’re not careful. Through sound estate planning, though, you might be able to spare some of your assets for your loved ones to inherit in a way that still allows you to qualify for Medicaid.
- Your potential incapacitation: Your health can change in the blink of an eye, and when it does, you want to ensure that your healthcare and financial decisions are protected. You can more adequately protect your interests by naming someone you trust in a power of attorney and a healthcare directive, thereby giving you peace of mind knowing that someone you can rely upon will make important decisions on your behalf.
Create the comprehensive estate plan you need
There’s a lot that can go into an estate plan. You just have to ensure that yours is custom-tailored to suit your needs. That’s why now is the best time to learn about your estate planning options and what each one can do for you. By doing so, you’ll hopefully find yourself in a strong position to pass your assets down as you see fit.