6 Major Client Concerns in Estate Planning

Why do estate planning? What is the point of Estate Planning? What is all the fuss about? Why is estate planning so important? 

When looking back at the legacy you would like to leave behind, many families and business owners, whether affluent or not, wish to plan an effective transfer of wealth to future generations. However, getting this plan in motion is often easier said than done.

When getting down to the nitty-gritty of creating an efficient estate plan, many are plagued by questions and concerns that, if not addressed properly, can lead to immense frustration and confusion. Let’s look at six major concerns people have when they do estate planning.

#1 Avoid Court and Government Interference

How do you pass on your hard-earned wealth to the next generation without government or court interference?

No one would like to have unnecessary court involvement in their life. But if you don’t plan your estate proactively, the court will make the decisions for you!

Without the right plan, if you are alive but incapable of taking care of yourself or making financial decisions, known as legal incapacity,  the court will decide who becomes responsible for you. To avoid this, you need to have the proper estate planning documents in place. 

Similar to incapacity, when you die, your estate will end up in probate unless you have the proper estate plan.  

Apart from exposing your private information to the public, probates can also take a huge amount of time. To avoid these, you must transfer all management of your assets into a revocable living trust.

Get the right type of advice to effectively plan your estate and reduce your concerns. Schedule a strategy session today!

#2 Avoid Taxes or Fees

Another concern is how to pass on your hard-earned wealth to your offspring without spending a huge amount of it on taxes or fees? Taxes can come in four different forms (1) capital gains tax (2) estate tax (3) property tax (4) income tax. All four taxes are heavily dependent on proper planning. 

In addition, you likely want to avoid paying fees for costly government proceedings called Probate.

#3 Avoid Nursing Home Costs

The next concern is how to avoid or minimize going broke by paying nursing home. Nursing homes can cost over $120,000 per year in Los Angeles, California. 

Don’t be fooled by the myth that all living trusts avoid nursing home costs. Every trust is built differently. You need to have the right provisions in your documents to give the power to your loved ones to minimize nursing home costs. 

In addition, you can take planning into your own hands today and use irrevocable trusts to get you qualified for government programs that will cover a majority of your nursing home costs. 

By using an irrevocable trust, you might be able to avoid paying for the nursing home. When you form and fund an irrevocable trust with your property, you will name someone else to act as trustee. 

Doing so severs you from the ownership of your property, and thus a nursing home cannot force you to use these assets to pay for your residence and care, as they do not belong to you anymore. Thus, by transferring property you basically deplete your estate of disposable assets.

#4 Avoid Creditors or Predators After Death

Face it. Everyone has this worry. They worry that once their children inherit the money, they will use it all up quickly, won’t be able to manage the funds, and the funds will be lost to their creditors and those preying on them.

How do you protect your money from creditors and predators of your children? When giving your money away to your children, it could get lost right away, through creditors that have been patiently waiting for this day. You don’t want your money going to a creditor’s pocket right when your child receives it. 

In addition, What if your child is a spendthrift? Lacks money skills? A shopaholic? 

Well, one of the best ways to protect your monies from creditors or predators is to have proper sub-trust within your living trusts for your children. 

Get the right type of advice to effectively plan your estate and reduce your concerns. Schedule a strategy session today!

#5 Avoid Family Fights Over Your Money When You Die

This concern is considered one of the biggest problems in today’s court system. Children or inheritors, whoever it is, fight over the money once someone passes away. 

You start seeing their true colors of family and friends when someone passes away. You see animosity and fighting. This should be a time the family strengthens, but most of the time, it’s just the opposite. 

#6 Passing on Wisdom, Values and Life Lessons

Last but not least, is how do you pass on your wisdom, values, life lessons and teachings? These are the values you have constantly been teaching to your children throughout your life.  

How can you possibly pass on these values, when the children are concerned with all the above five concerns. It completely outweighs everything you did. 

One of the most valuable gifts you can leave your children is the gift of wisdom. Share your struggles, your stories and your journey in this life. That’s true wealth. 


Your next step is to get your life in order and take care of these concerns by scheduling a strategy session with me today by clicking this link!