Estate Planning Tip Number One, do not leave your money to your children!
If you leave money to your children, they could lose it!
Common reasons children lose their inheritance is because they get divorced, sued, or because of their own financial irresponsibility. Instead of leaving money to your children, leave your assets to a Trust. Your Trust can’t get divorced, Your Trust is much less likely to get sued than one of your children, and your Trust can be managed by a Trustee that you select until your children are responsible enough to manage their own inheritance. Leave your money to a Trust, not your children.
Estate Planning Tip Number Two, plan for disability. The majority of us will be disabled at some point in our life. When creating your Estate Plan, it is imperative that you include a Financial and Medical Power Attorney in case of your future incapacity as well as a Trust that includes Special Needs Provisions for any of your children or grandchildren.
Estate Planning Tip Number Three, protect your property from lawsuits. In the United States, there are millions of lawsuits filed every single year and billions paid out in judgments every few days. By many statistics, each of us have about a 1 in 3 chance of being sued. Ending up on the wrong end of a lawsuit can have devastating effects on your family’s standard of living. When creating your Estate Plan, I recommend that you look into setting up some type of structure such as a Limited Liability Company, a Limited Partnership, or an Asset Protection Trust to shield your assets from lawsuits.
Estate Planning Tip Number Four, plan for your long term care. The average cost for one month of living in a Nursing Home in Denver is around $7,000. Many families will see their parents’ estate greatly diminished because of a long term stay in a nursing home, other families will see their parents’ wealth completely wiped out because of nursing home care. By planning ahead of time for your long term care, you can ensure that your family gets your property and not the government or a healthcare provider.
Estate Planning Tip Number Five, speak with a professional. These days, there are a variety of online and Do-It-Yourself tools available for individuals looking to create an Estate Plan. However, I have met with too many families that have had to spend years of their life and thousands or tens of thousands of dollars administering their loved one’s estate simply because their parents did not seek proper guidance. When setting up your Estate Plan, it is well worth your time to speak with a professional who creates and administers Estate plans every single day.
If you have any questions about setting up your Estate Plan, please give us a call today. I am Attorney Blake Harris here at Blake Harris Law and I would be happy to help you with all of your Estate Planning needs.