Estate Planning Needs of Seniors, Part 2
2/5/2013 @ 11:11:AM By Maureen Lyons
While disability planning, retirement planning, and special needs planning can be ‘top of mind’ issues for boomers or older seniors, there are two additional essential estate planning needs that are not directly tied to the economy.
These two concerns, if not addressed adequately, are responsible for a lot of family discord and discontent, not to mention the dissipation of one’s assets and life savings. Lastly, failure to address these planning categories can lead to potentially serious probate issues.
Beneficiary protection planning.
Protecting an inheritance from being lost in a divorce or to a beneficiary’s creditors is a serious concern of many individuals. Many from the older generation fear that their children and grandchildren lack strong financial discipline and decision-making skills. The potential for adverse creditor action or for beneficiary dissipation of an inheritance is greater during difficult economic times.
Also, divorce exceeds 50% nationally. Many individuals are concerned about their children and grandchildren divorcing. They do not want the assets they worked so hard to accumulate winding up in the hands of a former daughter-in-law, son-in-law, etc. Since divorce rates increase in difficult economic times, this planning is even more critical now than in better economic conditions.
Blended family planning.
More divorces lead to more second and subsequent marriages, each with a higher statistical probability of ending in another divorce. With blended families (in other words with potentially his, her, and their kids) it is important that each parent’s planning protect his or her children in the event that parent predeceases the subsequent spouse. Failure of blended-family parents to do this type of planning practically guarantees that somebody’s kids will be disinherited or a messy probate will result.
Carefully drafted estate plans protect beneficiaries from divorce, creditors, and themselves. Such plans can also provide for children from prior marriages, which is often the only way to ensure that these beneficiaries actually receive any inheritance.
Posted Under: Comprehensive Estate Planning, Estate Administration, Estate Planning
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Are you prepared? Have you given someone the legal authority to make medical decisions on your behalf if you are unable to do so through an Advance Directive or Healthcare Power of Attorney? Does that person know what you want AND what you don’t want? Do you have a Living Will which addresses your end-of-life choices? Don’t wait. Plan now.