There are so many facets to long-term care planning that many people fail to discuss it or investigate the options. This is a mistake, though, because long term planning is one of the best ways of protecting assets and ensuring that your wishes are carried out when you are no longer able to articulate them or make them known. Many people think that long term planning is unnecessary but the reality is that the majority of people will need some form of care, whether temporary or permanent, at some point in their lives. Furthermore, long-term care planning is not solely related to medical needs or designating powers of attorney in the case of incapacity.
One of the key goals of estate planning for many Michigan residents is tax planning and providing for their relatives and heirs. People want to figure out the best way to set up their wills and inheritances so that the maximum amount possible of the estate is preserved for heirs and beneficiaries instead of going toward taxes. Trusts can be a very valuable tool for tax planning and estate planning purposes.
Many Michigan residents put off discussing estate planning or making plans for after their death because it is uncomfortable to think about. However, the desire to leave money, assets, or other possessions to one's children often motivates people to take the steps to begin this planning process. Although there are many different options available for protecting one's own interests, as well as the potential interests of prospective heirs, trusts should not be overlooked.
Many people avoid estate planning altogether because it tends to be an uncomfortable subject. Other people may tackle estate planning head-on but rely primarily on a will as the way to ensure that their wishes are carried out upon their deaths. There are some things that a will cannot do, however, that trusts can--and these things are often beneficial to the owner of the trust.
Because people work so hard for their money during their lives, they often want to be the ones to decide where it will go and how it will be used after their deaths. Many Michigan residents fail to make plans and arrangements involving their money until it is too late, however. This often means that their wishes are not fulfilled and conflicts easily arise among family members about inheritances. Trusts provide an effective vehicle to prevent these problems and ensure that a deceased's wishes are carried out after-or even during-his or her death.
Planning for one's death or physical limitations and health problems is not generally regarded as a pleasant experience by most people. However, long term planning is critical for aging Michigans who want to ensure that their wishes are followed with regard to their medical care and end-of-life plans. In addition, long-term care planning is important to ensure that rising medical expenses and potential nursing home expenses do not unduly burden relatives and caregivers.
For someone who is going through the process of establishing a trust during the estate planning process, selecting a trustee is a critical. After all, this is the individual who will be tasked with executing the terms of the trust in accordance with the settlor's wishes.
Many people may be familiar with Medicaid, a program operated by the state and federal governments to provide medical coverage for people who meet certain income and health-related qualifications. In addition to providing basic medical coverage, Medicaid benefits can also be used to cover the cost of long-term care.
Going through the process of estate planning is all about making sure an individual's assets and property wind up in the right hands upon passing away. Although close relatives are often top candidates to receive these assets, people may also have strong connections to certain charitable causes or organizations.
When taking the first steps to create an estate plan, people might hear a lot about wills and trusts. As this happens, it's natural to wonder if specific types of estate planning instruments will actually be beneficial. One increasingly common strategy is to use a pour-over trust in conjunction with a will as people take important steps to protect their legacies.