Is estate planning necessary for people with less than $1,000,000 in assets?

Yes.  Everyone should consider estate and long-term care planning to protect their assets and preserve their dignity. A durable power of attorney, health care proxy and a living will can ensure ongoing decision making in the event of a disability. Wills and trusts can ensure a proper disposition of your assets at the time of your death. Long term care planning can protect your assets from Medicaid and nursing home claims. There are also federal and state income tax issues which may affect people with under $1,000,000 that should be addressed (e.g., IRA distributions, basis rules, and capital gains on the sale of a residence).

Posted in: Estate Planning and Elder Law