An recent article in the New York Times discussed the ill-conceived notion that estate planning is for the ultra-rich who must worry about the estate tax threshold because their income exceeds $5.25 million for an individual or $10.5 million for a married couple. However, the article provides an important reminder that estate planning is not just for the most affluent because everyone can benefit from an estate plan. Properly constructed estate plans provide for incapacity, designate how one’s legacy should pass, protect one’s dignity when stricken with a terminal illness or injury and shield one’s property from overzealous creditors.
Unfortunately, those of us who are not in the 39 percent tax bracket sometimes have a tendency to underestimate the value of an estate plan. Many middle class people simply provide a beneficiary on their bank accounts and insurance policies, title their property in joint tenancy and assume all of the heavy lifting has been accomplished. These simple informal approaches to estate planning can go seriously wrong because family situations frequently change. Divorce, remarriage, death and other major life events can lead to outcomes that were not anticipated without a proper estate planning that is periodically reviewed and updated.
An experienced Santa Fe Estate Planning Attorney can evaluate these types of arrangements to determine that they are your best option and consistent with your other estate planning objectives and documents. Many times a new marriage can make it important to review beneficiary designations on insurance and bank accounts as well as forms of ownership in other types of property held in conjunction with another party.
There are also aspects of an estate plan that cannot be addressed by these types of methods, such as incapacity and extraordinary medical planning. If a person suffers a debilitating injury, Alzheimer’s disease or other form of mental incapacity, a power of attorney can ensure that the person making decisions about your health care and your financial affairs is someone that you would choose to make these fundamental decisions.
Similarly, if you have moral or religious concerns about extraordinary life prolonging measures, you can also prepare for these types of issues by having an advance directive for medical care prepared. Parents may want to designate a preferred guardian if faced with the inability to care for their children because of a medical condition or catastrophic injury.
The above information is designed solely to illustrate general principles of law, and does not constitute a specific legal opinion on individual cases. We suggest that you contact experienced legal counsel for a specific opinion tailored to your individual circumstances.
The key point to take away from this discussion is that estate planning is not something that wealthy people do to protect their assets and legacy. Everyone can benefit from effective estate planning though a person’s individual needs may differ based on his or her unique circumstance. If you are curious how estate planning can benefit you, we invite you to talk to a knowledgeable New Mexico Estate Planning Lawyer in our Santa Fe or Albuquerque office. Call us today to schedule your free consultation at (505) 989-8117 so that you can learn about your rights.
Comments are closed