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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.
Copyright © 2005 Integrity Marketing
Solutions. All rights reserved. Some artwork provided under license
agreement. 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.
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