You may naturally assume that taxation is at the top of the list, but in fact, estate taxes do not impact most people. The federal estate tax carries a $5.43 million credit or exclusion. This is the amount that can be transferred before the estate tax would kick in, and clearly, most people have not accumulated this type of wealth.
One priority that many people mention is the matter of control. When you hear that a trust may be a better choice than a will on many different levels, you may be concerned about the loss of control. What if you need the assets that you convey into the trust at some point in time?
This is a good question, but you can rest assured if you were to create a revocable living trust. The person creating the trust can act as the trustee, so you would be able to control the actions of the trust while you are alive and fully capable of making sound decisions.
If you want to actually dissolve the trust entirely, you could do so when you have a revocable living trust in place.
One of the benefits that you gain is the ability to facilitate asset transfers outside of probate. A will would be admitted to probate, and this process can be time-consuming and expensive.
There are different types of trusts that are not revocable, and they can be useful under certain circumstances. Some of them allow you to continue to receive income from the trust, so you do not surrender complete access to resources.
Perhaps surprisingly, family harmony is another top priority for many people. When assets are being distributed, hard feelings can enter the picture. When you are envisioning a time when you will no longer be around for your loved ones, you may naturally prioritize ongoing family harmony.
When you consider the impact that your estate planning decisions may have on the family dynamic, you can do everything possible to keep the peace.
Quality Living Assistance
Many people are aware of the fact that most people will need long-term care, and Medicare does not pay for living assistance. Medicaid is the solution for many, but there are those who are concerned about the quality of the care that they will receive if they are enrolled in the Medicaid program.
In fact, you can receive quality long-term care if you obtain Medicaid eligibility.
Get in Touch
If you would like to discuss these priorities with a licensed professional, contact us through this page to set up a free consultation: 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.