Whenever a celebrity passes away, chances are that their estate plan is a newsworthy topic. We saw it with David Bowie's passing, and lately Prince's untimely demise. With these stories, it is natural to wonder about our parents' estate plans. We might wonder whether there will be disputes over their assets or whether they have a plan to protect their estate from creditors. Moreover, we may wonder who may care for them when they are no longer able to care for themselves (or who they want to care for them).
Because of these uncertainties, it may be worthwhile to have honest and frank conversations about your parent's estate plan. This is especially important for those with large estates. This post will highlight a few of the many benefits of doing so.
Tax savings - Arguably the most important aspect of estate planning is preserving it for beneficiaries. An important way to do so is to minimize tax exposure. So there are some strategies that can minimize exposure, but you may not know that you need them until you talk with your parents.
Peace of mind - Knowing that things are taken care of can be a great weight of your shoulders; especially if you find that your parents' finances are in disarray, or that someone has been siphoning money from them without their knowledge. Again, this peace of mind cannot be achieved unless a conversation is made.
If you have additional questions about how to approach parents or elderly loved ones about their estate plan (or the need to have one) an experienced estate planning attorney can help.