As we’ve covered here, Baby Boomers are beginning to retire this year. If you are one of the 10,000 Americans turning 65 every day, here are 10 Estate Planning tips every Baby Boomer should look at when planning for their retirement.
First let’s talk about a few steps every Boomer can take. The first step to protecting your assets is to set up a solid Estate Plan. When forming your Plan, you should keep in mind two basic scenarios:
1. What happens to your estate if you pass away?
2. What happens to your estate if you get sick and must rely on others to make decisions for you?
To get started, it’s a good idea to consult with an Estate Planning or Elder Law attorney. Both can provide sound advice and will be able to implement reliable strategies to make sure your assets are efficiently passed on to your beneficiaries. This will help avoid potential conflicts among your heirs and minimize future court costs.
A lot of Baby Boomers worry about estate taxes but with the federal exemption now over $5 million dollars only a small fraction (one-tenth of 1%) of estates will have to pay federal estate tax.
The most overlooked part of any Estate Plan is accounting for the cost of long-term care. Most people don’t think they will need it but the reality is 70% of our population over the age of 65 will need some form of long-term care while more than 40% will need nursing home care.
Fortunately there are solutions available that will protect your assets while still allowing you to access long-term care benefits under government programs such as Medicaid. Consult with your Estate Planning or Elder Law attorney to assess your options.
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