When your parents are getting older, you might be wondering about their end-of-life plans. You know some of their wishes, like what happens if they fall ill or have to go to a nursing home, but no one has outright spoken about their estate plans or other specifics.
You're getting older, and you've decided that it's time to put together an estate plan. You know that you need a will, but is there anything else that you should have?
You were diagnosed with dementia a few months ago. For the most part, you still know what's happening around you. You know that you may lose some of this awareness as time goes on as a result of this disease.
Estate planning is something you hadn't been thinking about. After all, you're only in your mid-20s, and you have a lot of life left to live.
You're unwell, and you've known for a while that your time was coming. You didn't have an estate plan in the past, and you know that it's a good idea to put one together soon.
It can be hard to think about your health going downhill or your eventual death, but it's essential to do so in order to put together an estate plan. Your end-of-life needs and wishes can be met, but you need to establish what they are and make sure that others are going to need to abide by them.
For estate tax planning, one thing you may be interested in is a 529 plan. This is a plan that is designed to help reduce state and federal estate taxes. According to Section 529 of the Internal Revenue Code, no amount of money can be included in your estate for the purpose of estate taxes if it is of an interest to a qualified tuition program. What that means is that if the assets in your estate plan are designated to be used in a 529 plan, then they may reduce the overall value of your estate and will not be taxed.
An estate plan should be a reflection of your life, your wishes and your intentions. With an estate plan in place, you're establishing rules for how you want to have your assets handled and giving instructions on how to handle situations where you're injured or unable to provide care for yourself or your dependents.
Are you a snowbird? Do you love to travel south in the winter but always call New York your home? If so, you need to remember to plan for this in your estate plan.
Estate planning is an extended process. While many people think it's only about putting together a will, estate planning is actually something that should take place over time, so that you can have a will, trusts, guardianships and other legal documents in place to protect your beneficiaries and yourself.