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Terminal Topics
It has been
said that there are only two certainties in life: death and
taxes. Nevertheless, even
these two certainties differ remarkably in their respective
degrees of certainty. Whereas taxes can be minimized, deferred or even legally
avoided (but not evaded*), death awaits us all and is often
preceded by a period of incapacity. Whether one is a prince or a pauper,
both incapacity and death can arrive without warning.
Therefore, it is essential that you make
appropriate Life & Estate Plans now to take care of your loved ones
and your hard-earned assets before it is too late. In this article we
will highlight some critical issues to address while there is still time
to plan.
Incapacity
Planning
Do you read the newspaper, listen to the radio or watch television? If
so, then you know that accidents and dread diseases are part of our
everyday human experience. We all believe such tragedies will befall
someone else. But what if you made the headlines or the lead story
today? What if you did not know who you are, where you are or what time
it is? Who would make your important personal, health care and financial
decisions tomorrow? Would it be someone you appoint through proper legal
instruments or someone appointed for you by a court? The choice is
yours.
Long-Term
Care
The number one fear of many Americans, particularly retirees, is running
out of money before they die. That is understandable, given the volatile
economy and the specter of nursing home costs. Although you cannot
control the economy, you can protect your hard-earned assets from the
cost of round-the-clock care in a long-term care facility. In fact, you
may insure the ability to have your long-term care provided in your own
home, but only if you properly contract for such coverage through a
proper long-term care insurance contract while you are insurable. If you
wait too long, your options are very limited. In a worse case scenario,
you may end up depleting your assets and on Medicaid…the program
designed for the indigent poor. The choice is yours.
End-Of-Life
Decisions
For many people, the line
between preserving life and dying naturally is quite fine. In the end,
according to the United States Supreme Court, every person has the right
to define that fine line for his or herself. Where is that line for you?
Only by executing proper legal
instruments can you determine the course of your health care treatment
as you approach that fine line. Depending on your unique personal
circumstances, you should consult your loved ones and your legal,
medical and spiritual advisors regarding your wishes. Otherwise, your
failure to address this ultimate end-of-life issue in your Life &
Estate Plan can potentially lead to family strife and poison
relationships for generations. The choice is yours.
Testamentary Transfers
You will never see a hearse pulling a
U-Haul trailer. In short, you cannot take your worldly possessions with
you beyond this life. What will be the legacy of your lifetime of work?
Will the inheritance you leave be used wisely or dissipated by your
heirs? Will it disappear to their squandering, divorces, lawsuits or
bankruptcies? Have you considered protecting the inheritance through
long-term discretionary trusts?
Will your lifetime of work be lost to
the IRS unnecessarily? Note: Each taxpayer is authorized an exemption of
$1 million from federal estate taxation under current law. However, only
through proper planning may a married couple protect up to $2 million
from federal estate taxes with rates up to 50%. Single persons with an
estate exceeding $1 million, on the other hand, may need to engage in
advanced legal strategies to disinherit the IRS. Only through proper
legal instruments may you protect your assets from these threats. The
choice is yours.
Conclusion
The process of preparing your Life & Estate Plan is an extremely
personal experience. To a large extent, it is not something you do for
yourself. Rather, you do it for the people you love. If you do not want
to risk leaving a financial and legal mess upon your incapacity or
death, we strongly encourage you to seek qualified legal counsel for
assistance. The choice is yours.
* As infamous gangster Al Capone learned, tax evasion is a federal crime.
This
publication does not constitute legal, accounting or other professional
advice. Although it is intended to be accurate, neither the publisher
nor any other party assumes liability for loss or damage due to reliance
on this material.
Copyright © 2004 by Integrity Marketing
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