You are likely aware that you need a comprehensive estate plan to ensure that your assets are passed down exactly how you prefer. However, a part of creating a robust estate plan is considering the potential threats to your assets. If you want to pass down assets and wealth to your children or other relatives, you must be sure to protect your assets so they remain in excellent condition during your lifetime. Your estate planning attorney at The Millman Law Group can help you discover potential threats and the best ways to protect your assets from those threats.
Federal Gift and Estate Taxes
The federal gift and estate tax placed on the transfer of wealth collected from your estate during probate. Each individual is subject to federal gift and estate taxes at a rate of 40%, although many people may believe that their estate assets are not significant enough to incur this tax. However, the tax applies to all qualifying gifts made during a taxpayer’s lifetime and all estate assets owned at the time of death. Your estate planning attorney can help you prepare for the potential taxes and minimize them while you can.
A divorce can threaten your estate if you do not make an effort to protect your assets. Separate property is typically defined as assets owned before marriage or inherited during the marriage. Commingling separate property can convert it to marital property. Additionally, income derived from separate property is often considered marital property. Therefore, anything regarded as marital property is considered fair game for division during divorce unless you take steps to protect your assets.
What would happen if you were seriously injured in a car accident? If those injuries prevented you from managing your estate, who would take over for you? Your spouse would be the likely choice, but they may not have the legal authority to step in and take control unless you have taken steps to ensure their authority. If you are not married, a close family member may be your choice, but it is even more important to draw up legal documents that grant them this power. Legal battles may ensue if more than one person believes they should take over for you. You can avoid these problems by creating plans for incapacity today.
Long-Term Care Expenses
You may be able to cover long-term care expenses with Medicaid, but you must qualify for the program first. The requirements for Medicaid are strict, and the asset limit is low. After a lifetime, your non-exempt assets can easily exceed the limit. If they exceed, you will be denied and expected to “spend down” your resources before applying again. To avoid losing your assets or putting them at risk, you can protect your assets and prepare for future care with help from your attorney. There are many ways to adjust your estate to qualify for Medicaid, but planning ahead is key.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.