While we all love to save money and time, your estate plan is not a good place to cut corners. DIY estate planners often use inexpensive will templates and generic online legal advice to draft an estate plan on the cheap. A new Wall Street Journal article, gives a few reasons to reconsider this strategy. More
Plan Your Estate
- Changes in Elder Law
- Estate Planning Documents
- Long Term Care Insurance
- Plan Your Estate
- Senior Care
- Social Security
- Special Needs Trust
- Veteran's Benefits
78% of Americans under the age of 36 do not have a will or a trust in place. Frankly, most millennials show little interest in estate planning. This can create quite the mess if you are ever (God forbid) involved in a tragic accident. As discussed in a Wealth Management article, planning your estate is an important step in in preparing for the future and adulthood.
Here are a few reasons millennials need to plan their estate: More
Estate planning can become complicated quickly if you are remarried. Here are a few things to consider, from Forbes.
- Your accounts. Oftentimes, one may choose to keep their accounts separate when remarried while having some joint accounts for groceries, utilities, etc. This can be a good thing, as separate accounts can limit the risk of being responsible for another spouse’s debt.
- A trust. Putting assets in a trust can make sure assets go to your children without getting comingled. This can be an especially useful estate planning tool if both spouses have children from previous marriages or if your spouse gets remarried after your death.
- Asset distribution. Another useful tool in mixed families is timing when an inheritance is distributed. For example, if you and your spouse both have children from previous relationships, a trust is a great way to make sure your wishes will be honored.
- The house. You may also wish to consider re-titling your home into your trust. This way, your surviving spouse will be able to use it after your death. In other situations, you may wish for it to be distributed to your family if you pre-decease your spouse.
The cost estimating website “Howmuch” has released estimates for the cost of long term care in each state. The report examines costs for adult day care, home health aides, assisted living and nursing home care. Michigan while expensive, is fortunately is not at the top of the list for any category. For a month in Michigan it costs on average:
- Adult day care: = $1,733
- Home health aide = $4,004
- Assisted living = $3,563
- Nursing home = $8,182
If you are a real estate investor, physician or other entrepreneur who was interested in protecting your assets and limiting your risk to potential lawsuits, as a Michigan resident, your only option was to look to other states such as Delaware or Alaska for such planning options. This was a legally questionable strategy if you did not reside in one of those states. Now, Michigan residents will no longer need to look elsewhere. On December 8, 2016, Governor Snyder signed a new law called the “Qualified Dispositions in Trust Act” which permits Michigan asset protection trusts. On March 8, 2017 – the effective date of the law – Michigan became one of only 17 states that permit these types of trusts.
The new law is a game changer in this state for asset protection planning. Not only can a Michigan resident now legally create his or her own trust to shield assets from creditors, but he or she can also maintain a beneficial interest in the trust property. Here are just a few advantages of the new law: More