Many Texas residents have likely not given a lot of thought to planning for the time when they pass away. While many may believe that estate planning is reserved for the wealthy to avoid heavy inheritance taxes, financial advisers recommend that most families need a plan. When individuals have children, grandchildren, parents, bank accounts or other assets, an estate plan is important to provide protection to families.
There is more to consider in estate planning than taxes
It is important to understand options for long-term care
Growing old is an inevitable part of life for Texas residents and others across the country. However, many do not spend a lot of time preparing for something in the future, especially when one must consider the possibility of becoming ill or incapacitated. It is important to address the issue of long-term care planning when someone is still capable of decision-making.
Avoid a lengthy probate process with a testamentary trust
Estate planning is an increasingly common practice among Texas residents and others around the country. More people are coming to the realization that planning for the future is not limited to the wealthiest investors. The goal for many when developing a plan is to ensure that their heirs can avoid the probate process. By doing this, most hope to save both time and money. Financial experts recently discussed a method to minimize the time for probate.
Asset protection vital in long-term care planning
Many Texas residents and others across the country have trusts established that eliminate the need for probate in the event of death or incapacity. However, these traditional trusts do not provide protection for an estate against creditors either when someone is living or deceased. Some investors are now considering the use of an irrevocable trust to protect themselves and their heirs against high long\-term care costs. This type of trust can also prevent loss of non-liquid assets.
Avoid these mistakes in estate planning
Many Texas residents and others around the nation may think about the legacy they will leave behind one day. However, most avoid discussing it since it involves thinking about a time when one will no longer be around. While it may be a sensitive topic, estate planning is vital in ensuring that one's assets are handled as desired.
