August 2023

MANAGEMENT TRENDS

When Is the Right Time to Begin Estate Planning? Michelle Williams, CMCA, AMS, Taylor Management Company, AAMC, AMO

I t’s never too early to start the estate planning pro cess. There are several components to a solid estate plan. Experts recommend a strong team to guide you through the process, which consists of a financial advisor, an accountant, and an estate planning attorney. However, if these options are unavailable to you, many turn to online legal services to guide them through the process. Whichever means you choose, it is better to do it sooner than later. Although families find this topic uncomfortable to discuss, once done, it can be comforting to know that your plan is in place. Engage your family in the planning and keep the conver sation fact-based so they are clear on your exact wishes. Your family may find it difficult to admit what you have come to accept, that your end-of-life decisions must be made. Three reasons for having your estate plan in place are to maintain control during life, efficiently transfer wealth and assets at death, and protect your beneficiaries from others and, at times, themselves. Your estate will include your money, life insurance pro ceeds, real estate and any personal property including antiques, jewelry, cars, and, just as important, your pets. A trust will allow you to manage your estate while living and in death. Living trusts become important when consid ering disability planning, planning for a spouse and ben eficiaries and to avoid probate. Trusts allow you, alive or passed on, to protect assets from potential risks. These risks can take place when someone named in the trust is facing a tough period in their life and may not be able to make the best decisions at that time of their life. During difficult times like this, a trust will allow another person to control any necessary distributions Irrevocable Trusts for Medicaid planning. Someone other than yourself oversees the trust. Medicaid Trusts come into play if you become sick and need extended care, this pro tects your assets. Your estate will pay for medical services

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“A trust will allow you to manage your estate while living and in death."

and can potentially deplete your life’s savings. Medicaid will look back five years to determine if you qualify. If you have no assets due to moving them into a trust, you may qualify for Medicaid coverage, which can assist with medical expens es, and your family will still benefit from your estate. A living will assures your medical wishes are followed and your assets are distributed as you wish. Check your 401K plans, life insurance, or any asset in which you have named a beneficiary. It is important to keep these docu ments updated as they will supersede your will, no matter what the will states. Review your plan when you have life changes. Beneficiaries may no longer be the best choice, there may be marriages, divorces, and new additions to the family that you may want to consider, don’t wait. Statistics say seventy percent of adults still need an estate plan in place, because they are waiting until later in life or they are trying to figure out how to begin the process. Research your options and begin the planning process now. Today you are younger than you’ll ever be. n

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AUGUST 2023