If you think about estate planning you might reduce it to the act of drawing up a last will to express your final wishes regarding monetary assets. This is a rather closed viewpoint because it doesn’t really address the stages of aging.
The majority of people don’t pass away without going through these stages, and it takes intelligent advance planning to prepare for them.
When you reach the age of Social Security eligibility you do not magically gain the ability to retire. To be able to stop working you have to be able to handle your expenses without receiving a paycheck or profits from your business. It’s as simple as that. Most people are not going to be able to do this with Social Security benefits alone.
The wise course of action is to develop a well thought out retirement plan that will ultimately provide the financial underpinning that you need to enjoy your golden years.
Long-Term Care & Possible Incapacity
A high percentage of people will enter into another stage after their active retirement years. Most seniors eventually need long-term-care, and it is very expensive. You must plan ahead in advance to be prepared.
Incapacity planning is important as well. Alzheimer’s disease strikes upwards of 45% of people who are at least 85, and Alzheimer’s alone is not the only cause of incapacity.
If you are among those who would like to do certain things for your loved ones you should consider these goals when you are making financial decisions throughout your life. Those who simply hope for the best without acting thoughtfully may ultimately leave behind a bare cupboard.
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.