Retirement planning involves doing some careful calculations. You don’t want to work with ballpark figures because you may well be quite vulnerable financially during your twilight years. It is very likely that you will not be in a position to go out looking for a new career opportunity should you find yourself in financial need when you are 75 years of age or older.
With the above having been stated you should be very cognizant of the impact that property taxes may have on your finances as a senior citizen. Many individuals endeavor to “trade up” as it were over the years, living in homes that are more and more valuable. This is great on the one hand, but there is an inherent Catch-22 of sorts.
You could find yourself in possession of a very valuable house at a time when you are going to be living on a reduced income during retirement. As we all know the tax bill is going to be tied to the value of the home, and taxes do not necessarily remain stagnant. Your tax responsibility could potentially grow throughout your retirement years.
Keeping your taxes current is essential to avoid a tax liens. If you were to fall behind interest will accrue, and a difficult situation can continue to snowball.
The best way to evaluate your ability to handle your property taxes would be to sit down and discuss the details of your situation with a licensed and experienced Indianapolis financial planning lawyer. Your attorney will gain an understanding of your unique situation and advise you accordingly.
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.
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
- How Do I Know If My Estate Has Enough Liquidity? - July 22, 2019
- Can’t I Just Transfer Assets to My Adult Child If I Need to Qualify for Medicaid? - July 19, 2019
- What Type of Will Is Best for Me? - July 17, 2019