5 Reasons Why You Need an Elder Law Attorney for Estate Planning

If you are someone with an estate to distribute and heirs to take care of, it will perhaps be in your best interest to draw a comprehensive estate plan immediately. A good estate plan will help you

• Determine who’ll serve as the guardian of your minor children
• Determine how you are to be taken care of if you become incapacitated
• Protect your loved ones financially after you’ve passed away
• Keep court costs, taxes, and other legal fees at bay for your loved ones.

An estate plan guarantees that your wishes are honoured. Creating a sound estate plan isn’t easy. This is where you’ll need the services of an estate planning attorney.  

An estate planning lawyer is a licensed law professional that’ll leverage their experience in estate laws to help you create a will, designate beneficiaries, find ways to save on taxes, create a durable power of attorney, and perform other duties essential to creating a good estate plan.

Also known as probate attorneys, they possess a profound understanding of how your estate will be inventoried, valued, taxed, and dispersed upon your death.

The purpose of this article is to really stress how important an elder law attorney is to create a sound estate plan.

So let us look at the 5 reasons that explain why hiring an elder law attorney is wise, especially when it comes to estate planning. 

1. Specialized Knowledge and Expertise

Laws surrounding estate laws are complex, especially when you consider the rules dictating probate and trusts. It also doesn’t help that these laws vary from state to state. A seasoned lawyer will be privy to the estate planning laws that are currently active in your state. They’ll ensure that any decisions you make are legally enforceable and compliant with state laws.

For instance, a good living trust attorney will arm you with sound estate planning advice on what type of trust will best suit you. They’ll also customize your trust based on your specific requirements.

Similarly, you can also count on a seasoned lawyer to help you navigate the complicated probate process. With some luck, a good lawyer can also help you completely avoid the probate court process without any serious legal ramifications.  

2. Asset Protection

Asset protection is a crucial aspect of estate planning. A good attorney can help you legally defend your assets from creditors and future healthcare costs. Upon your death, most creditors will try to claim unpaid debts through costly lawsuits. These can leave your heirs in a very tricky situation.

A seasoned estate planning attorney can employ a plethora of strategies to protect your assets. They’ll use their insight into estate laws to determine whether your assets can be secured or if they’ll be subject to lawsuits. They’ll suggest the best protection strategies by taking both the current circumstances and future implications in mind.

For instance, a lawyer may advise you to start a Limited Liability Company. An LLC can protect your personal assets from creditors quite effectively. Furthermore, they can also suggest you get liability insurance, which again can protect you from any legal liability.

3. Long-Term Care Planning

 In a recent study published by Genworth, it was found that 7 out of 10 people over the age of 65 will need long-term care in 2023. The same study also states that home healthcare costs can easily surpass $54000 per year. Depending on the qualifications and skills of the caregivers, this cost could be way more.

Nursing home facilities, on the other hand, could end up costing more than $90000 per year. Needless to say, long-term care is costly, and most people have little to no options in front of them to fund it. Desperate for care, some people fall back on their life savings to pay for their healthcare.

There are only three options to fund long-term care. You can depend on your life savings and family assets, apply for Medicaid, or buy a long-term care insurance policy. An estate planning attorney could help you competently plan your care well ahead of time. They’ll employ strategies to make sure you are eligible for Medicaid or have the best long-term care insurance plan.

They can create an estate plan that clearly dictates how you are supposed to be taken care of in the event of your incapacitation. Most importantly, they’ll help you preserve your life savings so they can be transferred to your rightful heirs instead of being spent on hospitals and nursing homes.

4. Tax Planning

Minimizing the tax liability on your estate is perhaps one of the most important estate planning services that an attorney can render. Now, whether you or your heirs are liable to pay taxes will first depend on what state your estate’s in. Some states in America like Vermont, Illinois, Connecticut, Maryland, and New York impose estate taxes on their residents.

On the contrary, states like Michigan have no estate taxes whatsoever. If you are living in a state that does impose estate tax, then it is advisable to seek an estate planning attorney’s help to employ strategies that could mitigate the tax liability that your heirs may potentially be burdened with on their inheritance.

There are many methods that an attorney can use to help you save on estate taxes. They c

 You can live the rest of your life in peace… knowing that a sound estate plan and a reliable elder law attorney will ensure your wishes are honoured and your family is taken care of after your death.

5. Peace of Mind

As we mentioned above, the primary reason for estate plans to exist is to make sure your wishes are carried out accordingly once you’ve passed away. With the help of an elder law attorney, you can create an estate plan that clearly dictates who’ll inherit your assets, what they’ll inherit, and when they’ll receive it.

The absence of a sound estate plan could result in ugly disputes between your family members that can irreparably damage relationships. With the help of legally binding estate planning documents like a durable power of attorney or will, you ensure there is no room for conflict to brew between your loved ones. 

Moreover, without an estate plan, it will be up to the court to decide what’s to happen with your assets. An estate plan basically ensures that your estate doesn’t end up falling in the wrong hands.

Conclusion

Estate planning is one of the most important things you’ll do when you are alive to make sure your family is safe and financially secure when you’re dead. Now you can write an estate plan all by yourself. However, hiring an elder law attorney to write it for you is probably the better idea to make sure the plan is legally compliant and holds well in court.

They’ll use their extensive knowledge of estate laws to:

• Protect the value of your assets
• Plan for long-term health care
• Help you save or bypass estate taxes
• Make sure your assets are transferred to your rightful heirs without a hassle.

We suggest you don’t wait till you are old or close to retirement to initiate estate planning. Contact The Law Offices of Sean Patrick Cox if you want help planning your estate. The Law Offices of Sean Patrick Cox is the first name that pops up when you Google – ‘best estate planning attorney near me’ in Grand Rapids, MI.

We are the best when it comes to assisting with estate planning or dealing with other areas of elder law.

FAQ

1. What is elder law?

Ans: Elder law basically entails legal issues and disputes that concern the elderly, their caretakers, and their relatives. Probate administration, long-term care planning, estate planning, and asset protection are all crucial aspects of elder law.

2. What is estate planning?

Ans: Estate planning entails the creation of a plan that determines what’s supposed to happen to one’s assets upon their death. Typically, it involves the transfer of assets to designated beneficiaries upon the death of those assets’ rightful owners.

3. How much does it cost to hire an estate planning attorney?

Ans: The cost will vary depending on the lawyer you approach and what services you wish to acquire. For example, an attorney in Michigan will charge you a flat fee of around $500 to %1500 to draft a will. For more clarity on estate planning attorney fees, we suggest you give The Law Offices of Sean Patrick Cox a call.  

4. What are the benefits of estate planning?

Ans: Estate planning helps you

• Determine who’ll inherit your estate
• Minimize tax liability on an estate
• Mitigate the risk of dispute between family members
• Save your heirs a ton of money on court fees and other unnecessary legal charges.

5. How often should I update my estate plan?

Ans: It is recommended to review your estate plan frequently. We suggest reviewing your plan on a quarterly, semi-annually, or annual basis to adjust and revise the plan according to current circumstances.