If you are working on your estate plan this year, now is the time to start asking some tough questions. By doing so, you can make sure you touch on every important subject that comes up and be prepared for issues like incapacity or Medicaid qualifications.
When planning for your future, as well as the future of your loved ones, a few things you should ask include:
- Who depends on me and my financial support?
- Do I have any minor children?
- Have I structured my estate plan to help avoid taxes my heirs may otherwise face?
These questions are important because they help you create an estate plan that is well-rounded and supportive of you and your family.
Who depends on me and my financial support?
The first question matters because it points out that you may need to set up a trust or beneficiary designation on life insurance to make sure your loved ones are cared for. If you have a dependent or spouse who needs your financial support, you may want to set up a trust in their name with the proceeds of your life insurance being deposited there upon your death.
Do I have any minor children?
Another question to ask yourself is if you have minor children or dependents who rely on you. If you do, you should, once again, consider the financial implications of your death or incapacity. Additionally, you may want to set up guardianships, so your children don’t end up in foster care or in the care of a family member you don’t trust.
Have I structured my estate plan to help avoid taxes my heirs may otherwise face?
Finally, ask yourself if you have structured your estate plan in a way that will minimize taxation. There are several ways to help avoid overpaying on taxes, which could help your heirs save thousands of dollars. Getting a full financial picture of your estate and what you’ll leave behind is a must.
When you work on your estate plan, don’t be afraid to ask questions to get the most out of your time with your attorney. You need to make a well-rounded plan that addresses all your major concerns.
