Blogs from January, 2023

Estate planning is an essential process for everyone, but it becomes even more critical when you or a loved one has a chronic illness. There are many factors to consider and decisions to be made, but with careful planning, you can ensure that your wishes will be carried out and that your loved ones will be protected.

The team at Crain & Wooley shares key concepts to keep in mind when estate planning with a chronic illness.

What is a Chronic Illness, and How Does it Differ From Other Illnesses?

A chronic illness is a health condition that lasts three months or longer and typically cannot be cured. It can include conditions such as:

• Diabetes;
• Multiple sclerosis;
• Arthritis;
• Heart disease; and,
• Asthma.

While some chronic illnesses may be managed through treatment and lifestyle modifications, they are often life-long, and their symptoms may fluctuate over time. This can make them different from acute illnesses, which tend to have a rapid onset, short duration, and progressive recovery.

Chronic illnesses affect the physical as well as mental well-being of individuals by causing pain, fatigue, or cognitive difficulties. These persistent symptoms can impede an individual's daily functioning meaning that managing a chronic illness requires ongoing attention and care from both sufferers and medical professionals.

How Can You Prepare Your Estate Plan if You or Your Loved One has a Chronic Illness?

Preparing your estate plan if you or a loved one has a chronic illness is essential to ensure that all important decisions are taken care of in the event of an unexpected change in health status. This can be done by creating legal documents such as a will or trust, designating power of attorney, and setting up medical directives that dictate medical treatment interventions if the individual can no longer make those decisions themselves. Setting up such documents should include consulting with an estate planning lawyer to maximize the protection of the individual's legal and financial rights.

Additionally, it's wise to have family members involved in this process so that they understand the wishes of their loved ones during difficult times. Once established, estate plans must remain current and reflective of changes in an individual's finances, lifestyle, or health trajectory.

You Might Also Like: 5 Costly Estate Planning Mistakes to Avoid

Ready to Create an Estate Plan?

A chronic illness is a long-term health condition that cannot be cured. If you or your loved one has a chronic illness, it's essential to prepare your estate plan accordingly. With professional help from Crain & Wooley you can avoid obstacles down the road. Let our experienced estate planning attorneys help you prepare for the future. Reach out to our dedicated team online or by phone to get started: (972) 945-1610.

Having an estate plan can make a world of difference for your loved ones in the future. If you plan ahead, you can avoid making many costly mistakes and save yourself a headache. Our Dallas-Fort Worth estate planning attorneys go over ten estate planning mistakes that you need to avoid.

Mistake #1: Financial Procrastination

Estate planning may be a financial priority, but it is not exactly a day at the beach. Many of us want to put off estate planning until a later date. However, it's crucial to get started right away. If you procrastinate and wait too long, you may miss important tax advantages or be unable to benefit from the current estate tax exemptions. Click here and learn more about the benefits of having an estate plan.

Mistake #2: Outdated Wills and Forms

Once you have started drafting your will and other documents, keep them up-to-date. Several events in your life can require a change in the typeof estate planning documents you need. For example, getting married or divorced, having children, or even buying another home can all impact your current will.

Mistake #3: Forgetting to Update Beneficiaries

Another common mistake is forgetting to update beneficiaries. In most cases, you must go through the terms of your will to ensure that only the right people are named as beneficiaries. For example, if you have a child or grandchild who received an inheritance and is now back in school, their new financial needs may require changing your will.

Mistake #4: Not Considering Tax Implications of Transferring Property

In many cases, transferring property to your heirs can result in a hefty tax bill. For example, if you leave an inheritance to children or grandchildren, they will have to pay income taxes unless the gift falls within certain IRS limits. When planning your estate, consider any tax implications of transferring assets. This blog speaks further on estate taxes.

Mistake #5: Not Consulting with an Estate Planning Attorney

Many people try to save money using DIY estate planning forms or other online resources. While this may seem like a a good way to start drafting your will, consulting with an experienced estate planning attorney is essential. A professional can help ensure all the necessary documents are in place and help you avoid costly mistakes. Unfortunately, you won’t know if an estate plan is set up correctly until it’s too late. Therefore, it’s best to have an estate plan attorney ensure your documents are set properly according to your wishes. They can also provide guidance on trusts, probate, and other estate planning issues you may need to consider.

Let Us Help You!

By avoiding these five common estate planning mistakes, you can help ensure your possessions and assets are handled according to your wishes when the time comes. Taking the proper steps now can save your family a lot of frustration and stress down the road. If you need help figuring out where to start with your estate planning, consult our experienced estate planning team of attorneys. With our help, you can create a plan to keep your loved ones taken care of for generations to come.

Get in touch with our team today at (972) 945-1610 to schedule a consultation!