You want to make sure that your assets are passed down to your heirs as you get older, and that is why you need to think about asset protection now. What do you need to know about estate planning, and how can you use it to protect your assets as you get older?
1. Wills and Trusts Are Not Reserved for the Wealthy
Too often, people believe that wills and trusts are only items that are reserved for the rich and wealthy. In reality, that is not the case. Regardless of how much money you have or how much property you own, you need to work with an estate planning attorney who can help you use wills and trusts to protect your assets.
2. A Trust Can Reduce Your Tax Burden
You want to reduce the chances of your assets falling victim to estate taxes, both at the state level and the federal level. You may be able to use a trust to avoid preventable tax issues, making sure that your assets are passed down to your heirs.
3. Life Insurance Trust
You can use an irrevocable life insurance trust to remove your life insurance proceeds from your taxable estate. That way, your life insurance benefits are not taxed when you pass away. Work with an estate planning attorney to learn more.
4. Update Your Estate Plan
You may need to update your estate plan from time to time. As time goes on, your needs may evolve and change, and your estate planning lawyer can help you evaluate your current situation and make changes to your estate plan.
6. Without a Will, Your Assets
If you don’t have a last will, statutes of the state where you are a resident will decide who inherits your estate. These may be heirs to whom you have no intention of giving assets. It is worth the time and effort to make sure that your hard-earned assets go to the people you want them to.
7. Navigating Medicare and Medicaid
Your medical care can become incredibly expensive as you get older, and you may need help navigating Medicare and Medicaid. An estate planning lawyer can help you navigate these government programs and make sure as much of your medical expenses are covered as possible.
8. Avoid Potential Obstacles and Protect Your Interests
Finally, as you get older, you need to make sure that people do not take advantage of you. At Yorkway Law Group, we provide you with an objective source of advice, and we can help you set up an asset protection trust in Pennsylvania. Give us a call today to schedule a consultation.