Estate planning, in theory, makes great sense but is discouraging if your parents lack a motive. In New York, there’s no such thing as too late to start planning. If you have parents who haven’t created a full succession plan for their belongings, then you may be their last inspiration to do so. An estate plan benefits your parents financially, but it also accounts for their health later on.
Make mental and physical ability their concern
Telling your parents about the importance of estate planning is easier when you factor in their overall health. A time may come when they’re no longer able to manage their own money, assets or daily lives. How their belongings get dealt with during their deterioration, however, can be based on their exact wishes. They need a suitable estate plan to get their affairs in order before they pass away.
Suggest that family have a talk together
Estate planning calls on the same financial skills that a corporation uses. Getting the entire family together to speak to your parents about their wishes can make it much easier to handle all the details. Everyone should share their thoughts and ideas to create a solid plan. When your parents are alive but disabled, their estates can already list you as a(n):
- Power of attorney
Cover tax incentives and wealth generation
Some families are more interested in preserving their assets than worrying about their health. There are, for example, tax incentives in building an estate. From protecting assets from taxation to keeping those assets private, exemptions improve the value of an estate. Planning now also avoids probate, which could, otherwise, give your inheritance to a public court.