People have a tendency to sweep uncomfortable subjects under the rug. When it comes to estate planning, you are talking about death and most people don’t want to consider it. Death is inevitable so a complete failure to plan ahead is not very logical. So let our Florence estate planning attorney help you to get prepared.
Don’t procrastinate about estate planning
Aside from simply being uncomfortable with the idea of death, there are other reasons for procrastination. Some individuals understand the that they should have an estate plan in place, but they put it off because they think they will have plenty of time to address the matter in the future.
Why you should not delay
Currently, the average lifespan in the United States is over 78 years. This does mean you should delay planning your estate until you are around 75. This is, of course, an average and many thousands of people die each year before they have reached their 50s, let alone their 70s.
When you avoid estate planning, for whatever reason, you are placing your family members at risk because they are the ones who will suffer the consequences. If this makes sense, a simple first step to take would be to pick up the phone to arrange for an informative consultation with a good Northern Kentucky estate planning lawyer.
Proactive Planning With Dependents In Mind
People are prone to procrastination about estate planning, and this is especially true of younger adults. The Well below 50% of people who are under the age of 35 have executed even a single estate planning document. Everyone knows that senior citizens die with a higher frequency than people who are in their 20s, 30s or 40s. However, every year tens of thousands of people who are under the age of 50 pass away. And many of these individuals have spouses and children.
Estate planning for young families is important
Estate planning may be more important for younger families who rely on two incomes than it is for older Americans. After all, if you are in your 60s or older, your children are long grown and likely to be independent and self-supporting. But minor children are entirely reliant on their parents’ providing for them.
In addition having some type of income replacement vehicle in place, you also have to consider child guardianship. Your preferences should be stated in a legally binding manner by executing appropriate estate planning documents. Let our Florence estate planning attorney help.
Families with dependent children must plan ahead
Estate planning is a basic responsibility that goes along with being a responsible adult, and it is especially vital for people with dependent children. If you are currently unprepared, right now is a good time to take action and make an appointment to speak with our licensed and experienced Florence estate planning attorney.
Doing right by your grandchildren
When you retain an estate planning attorney and plan your estate as a grandparent, you may have some specific concerns. One of these the possibility of providing a disincentive for personal achievement if you were to give your young adult grandchildren large inheritances.
One way to make sure that you are not doing more harm than good is to create an incentive trust for a grandchild. With these trusts, you include constructive conditions that must be met before the grandchild receives distributions from the trust.
Some people will try to encourage work ethic by having the trust to match every dollar the beneficiary earns on the job. You can also include benchmarks for additional distributions as the beneficiary ages (and presumably becomes more and more responsible).
A few options to consider to plan for generations to come
If you have a grandchild of college-age you could pay for college tuition free of the gift tax. This reduces your estate tax exposure at the same time you provide your grandchild with educational opportunities.
Once again, you could create an incentive trust for a grandchild attending college and include stipulations that must that are educational in nature, such as remaining a student in good standing, and even provide a significant distribution upon graduation.
If you have questions regarding heirs or any other estate planning matters, please contact the experienced attorneys at The Potter Law Firm for a consultation. You can contact us either online or by calling us at (606) 324-5516 (Ashland, KY) or at (859) 372-6655 (Florence, KY) or for individuals in the vicinity of Charlotte, North Carolina at (704) 944-3245.
- Estate Planning for a Spendthrift Heir - July 3, 2020
- Estate Planning Procrastination Is Dangerous - June 29, 2020
- When Should You Use an Irrevocable Trust? - June 24, 2020
