Pros And Cons Of Lifetime Estate Planning
Lifetime estate planning is a topic some people do not want to face. However, while facing mortality is daunting, it is something that will come to each person at some point. Estate planning is something everyone needs to do.
What is involved with lifetime estate planning?
Estate planning allow people to put their wishes into a legally binding form. It helps avoid problems that often arise after someone passes away. It helps those who are left behind to know what their loved one wanted. It avoids getting the courts involved with end of life and probate decisions.
Estate planning requires the individual to think about how things should go at the end of life. The person needs to consider what needs to happen if he or she cannot make medical …show more content…
In 2015, that upper limit was $5.43 million. So, if a person dies in 2015, and has gifted a total of $6.0 million over his or her lifetime, the estate will owe 40 percent in taxes on the $0.57 million that went over that limit.
Planning being incapacitated
People often fall ill or are involved in an accident unexpectedly. If that person cannot make decisions on his or her own any more, who will make those decisions? This where durable financial and medical powers of attorney come into play.
A durable power of attorney allows one individual to make decisions for another person if the second person becomes incapacitated. Financial powers of attorney allow the trusted individual to use assets to pay bills, collect benefits, file taxes, or operate a business if the second individual cannot. Medical power of attorney allows the trusted individual to make medical decisions on behalf of the incapacitated individual.
Another document to add is advanced care directives. This is a legal document which outlines the kind of medical care the incapacitated individual would approve or disapprove of.
The Importance of a Good Estate Planning
What is involved with lifetime estate planning?
Estate planning allow people to put their wishes into a legally binding form. It helps avoid problems that often arise after someone passes away. It helps those who are left behind to know what their loved one wanted. It avoids getting the courts involved with end of life and probate decisions.
Estate planning requires the individual to think about how things should go at the end of life. The person needs to consider what needs to happen if he or she cannot make medical …show more content…
In 2015, that upper limit was $5.43 million. So, if a person dies in 2015, and has gifted a total of $6.0 million over his or her lifetime, the estate will owe 40 percent in taxes on the $0.57 million that went over that limit.
Planning being incapacitated
People often fall ill or are involved in an accident unexpectedly. If that person cannot make decisions on his or her own any more, who will make those decisions? This where durable financial and medical powers of attorney come into play.
A durable power of attorney allows one individual to make decisions for another person if the second person becomes incapacitated. Financial powers of attorney allow the trusted individual to use assets to pay bills, collect benefits, file taxes, or operate a business if the second individual cannot. Medical power of attorney allows the trusted individual to make medical decisions on behalf of the incapacitated individual.
Another document to add is advanced care directives. This is a legal document which outlines the kind of medical care the incapacitated individual would approve or disapprove of.
The Importance of a Good Estate Planning