The Importance of Estate Planning

Since April of 2009 I have been taking a course to receive a "Certified Senior Advisor" designation ("CSA"). The course consists of 25 hours of video, 740+ pages of reading and several tests - all in preparation for the final exam which is graded as pass or fail. If you pass, you are then awarded the designation of becoming a Certified Senior Advisor.

I initially thought the course would "lightly pepper" information so that a professional in the senior industry could have a general understanding of the issues facing older adults and their families. In reality, each topic is discussed in detail over at least 40 pages (which are in tiny print). The material is quite dense and goes into significant detail including numerous case studies and real world examples. This particular course includes social, medial, physical, mental, religious, financial and legal issues surrounding the process of aging. Just some of unique topics include being able to identify situations where elder abuse might be occurring to understanding the responsibilities of a geriatric care manager.

The most recent chapter I read on Estate Planning was startling. If you are reading this BLOG, and you care about your children or their children getting the most of what you spent your lifetime earning, it is essential that you contact a properly licensed estate attorney to be certain that your estate is protected. Most people (including me prior to reading this specific chapter) think that a Last Will and Testament would suffice in managing any estate issues after death. That could not be further from the truth.

While a Will can lay out the general game plan as to distribution of assets, the tax implications associated with not properly planning for the details (which could involve trusts and other transfer vehicles) to distribute assets etc would almost literally cost a fortune and should never be ignored. I can't image anything worse than dealing with the loss of a loved one and then realizing that most of everything they worked for their entire lives is being transferred to the government (via taxes) vs. their heirs. This is especially true since there are estate attorneys available in just about every town that can help with the proper set up of an estate to remove as much tax liability as possible.

The top two reasons why seniors are not taking the proper steps towards protecting their estates are: 1) History has taught them to not speak about money and 2) Talking about "after death" issues when they are alive is not easy. The second reason here is especially true when you consider that an adult child of a senior asking questions about estates and inheritance could be perceived as asking "when are you going to die" even though the conversation is mean to assist in end of life planning.

In today's complicated and disastrously taxable estate transfer world, these issues must be overcome. The reality is that there are easy ways to avoid some of the devastating tax implications, but it is up to the senior and their adult children to realistically look at their current situation and speak about the issues as a matter of family business. I am sure it is important to the senior that there is some type of inheritance or legacy passed on - and in many cases a brief conversation with a properly specialized attorney can make all the difference.

As my friend in the Long Term Care Insurance business always says, "It is better to be 10 years too early than a day late".

If you need assistance in finding a qualified Estate Attorney, please contact me and I would be happy to provide you with a few names within your community as well as a few whom I have come to trust and work with over the years.