People sometimes avoid the subject of estate planning for decades on end, because they assume that there would be no negative consequences if they do nothing to prepare for the inevitable. There are laws in place to take care of everything, right?
In reality, a lack of planning can yield some very negative consequences. If your failure to act only impacted you, it could be a risk that you are willing to take. However, when you go through life without a plan for aging and eventual death, it is your loved ones who will be left behind to deal with the aftermath.
Let’s look at some of the negative consequences that can come about if you take no steps to prepare for the future.
There are probably many people that you care about in your life. When you plan your estate effectively, you make sure that everyone is provided for in accordance with your wishes. Money and property that has monetary value is one part of the equation, but there are also sentimental items in the mix, like family heirlooms.
If you do nothing, you will die intestate. The state will determine how these assets are distributed, and it is highly unlikely that everyone that you love will be remembered in an appropriate manner.
Even if assets get into the hands of a loved one after you pass away through the actions of the state, or through some other method that was not intentionally planned, is this person fully capable of handling the assets effectively? Some good people are not good money managers. If a windfall was to come along, the individual in question could squander the inheritance, and very negative consequences could present themselves further on down the road.
Nursing Home Losses
Most seniors are going to need living assistance someday. You can stick your head in the sand assuming that you will not be one of them, but the figure is 70 percent according to the United States Department of Health and Human Services.
Medicare does not pay for long-term care. If you do nothing to address this dynamic, everything that you have accumulated throughout your life may wind up going into the coffers of a nursing home, and there could be nothing left for your family.
Don’t Take Chances
If you ask a random person about his or her priorities, this individual would probably say family comes first. At the same time, the majority of adults in the United States are unprepared from an estate planning perspective.
Action is required if you are going through life without a plan. We offer free consultations, and we invite you to send us a message through the following link to set up an appointment: Indianapolis IN Estate Planning Attorneys.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.