Typically, people do not begin to consider their long-term care until they are well into retirement. In today’s economic environment, it is essential to create and implement an elder care plan in your early 60s to ensure you take advantage of planning opportunities and have your wishes carried out. Outright Gifts
Trusts and Estates
When we retire, we envision a life of freedom not only from the stress of work, but also freedom from debt. You can achieve this by estate planning, in terms of lifestyle protection. Unfortunately, a debt-free retirement has become less of a reality.
When doing estate planning or just protecting your family, life insurance is usually a key component of the process. You can provide financial protection for your family or your business in the event of your premature death. But, like many issues we have written about life insurance, while we know what it is, the different options can be very confusing.
Wills are typically read days after a death, which is typically too late to help people who must make immediate decisions. The best way to ensure your wishes are carried out is to create a separate document spelling out your requests. Tell your executor where to find it when the time comes, or better yet, give it to the executor before your passing.
In today’s world, estate planning is not just for the elderly. You need to be prepared for any future scenario. While it might seem like a bother and inconvenience now, from my experience, I cannot stress enough the importance of preparing an estate plan and the time, money and stress it will save your loved ones.
Besides protecting your family from financial hardship, life insurance can also be an estate-planning tool to transfer large sums to your loved ones free of estate tax and at little or no gift tax cost. This can be done using a life insurance trust. Life insurance trusts incorporated into estate planning can have significant current and future use in a wide variety of individual circumstances.
Oscar-winning actor Philip Seymour Hoffman’s tragic death offers a lesson in estate planning mistakes to avoid. He left an estate reportedly worth $35 million to the mother of his three children, but due to improper planning, she is likely to face a multimillion-dollar tax bill, according to estate-planning experts who reviewed the will. Hoffman’s will was reportedly drawn up in October 2004 when he only had one son, prior to the births of his two daughters.