The biggest purchase for most families is their home. Therefore, in death, this is also the biggest asset that can be lost with a lack of proper planning. Without having a person in charge, HOA payments, mortgages, taxes, utilities and other payments will be missed causing delinquency or at worse, foreclosure.
One of the biggest practical problems millions of people face is how to plan for aging and death. In other words, what to do about estate planning. Estate planning is one of those things that so many people dread and many simply ignore it. The reasons people ignore estate planning vary widely. Some of the reasons are:
- I can’t afford it.
- I don’t have anything.
- I am healthy and/or young.
- I only have my house or car or bank accounts.
- I only have my children as heirs.
- I don’t have any children.
Many of these reasons make sense on first blush. But these are exactly the reasons why estate planning is so important. You cannot afford to not have a plan. No plan is extremely costly for family and heirs. It costs thousands in attorney’s fees, court costs and lost opportunity when estate planning is lacking. This could be because probate has to be opened, property must be sold, creditors go without being communicated with, and in-fighting between family because there is no definitive plan.
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For single people with no children, estate planning is especially important not only to dispose of your assets, but also to make arrangements to dispose of your body. Delays can occur if long lost parents, siblings or other distant relatives cannot be found to decide what happens to your body. This could delay burial or cause arrangements that go against you wishes or religious beliefs.
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Estate planning is about more than just planning for death. Medicaid benefits can be lost if there is a lack of proper planning. Medicaid has certain thresholds for the amount of assets a person can own and still qualify for benefits. Unexpected and unplanned inheritance can cost a family member their medical coverage and/or ability to receive residential nursing care. Proper planning can prevent this. Again, the home is the largest asset and should be planned for properly when buying and selling.
Attorney and Realtor, Natacha M. Gutierrez can help guide you through selling your home and understands how your estate plan affects the sale or purchase of a home. Have questions about real estate planning? Reach out to Natacha M. Gutierrez, Esq., Realtor.
Disclaimer: Legal information. Not legal advice.
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