When you consider the consequences of your failures, you would typically be the person who bears the brunt of them. However, this is not the case when it comes to estate planning failures. If you fail to act, or if you take incorrect actions, the loved ones that you will be leaving behind would suffer the consequences.
This is profound, and it is disturbing, because most people are going through life without any estate plan at all. Many people who have some type of plan have not looked at it in decades, and the original plan may or may not have been properly constructed.
In this blog post, we will look at a handful of the scenarios that can come about if you fail to plan ahead in an informed and effective manner.
Empty-Handed Love Ones
There are those who kick the can down the road when it comes to estate planning. They decide that they will always have time to put a plan in place later on, but things don’t always pan out that way.
If you die without an estate plan, the state will distribute your assets using the intestate succession laws of the state of Connecticut. In the end, some of the family members that you love may walk away empty-handed.
Loss of Family Wealth
Estate taxes can enter the picture when assets are changing hands. There is a federal estate tax on transfers that exceed $5.43 million, and there is a state estate tax. This tax can be applied on transfers that are in excess of $2 million.
There are things that you can do to reduce your estate tax exposure if you plan ahead effectively. If you do nothing, a great deal of wealth can be lost.
When you implement the appropriate strategies, loved ones who are not good money managers can draw from their inheritances over an extended period of time. On the other hand, if you do not include spendthrift protections in your estate plan, these family members could squander their inheritances, and they could experience hardships later in life.
Enriching a Nursing Home At the Expense of Your Family
Medicare does not pay for nursing home care, and most seniors will need living assistance at some point in time. In Connecticut, a year in a nursing home will typically cost well over $100,000, and costs are rising all the time. If you need multiple years of care, and many people do, everything that you want to pass along to your loved ones could go into the coffers of a nursing home.
There are nursing home asset protection strategies that can be implemented, but if you fail to take action, your loved ones may pay the price.
Don’t Delay Any Longer
If you are unprepared, now is the time to take action. We offer no obligation consultations, and you can contact us through this page to set up an appointment: Hartford CT Estate Planning Lawyers.