How Estate Plans Save Money In The Long-run

middle-aged couple talking to a lawyer and looking at documents

Estate plans can save you significant money in the long run. Individuals of all different backgrounds benefit from creating an estate plan, not just wealthy individuals. Working with an attorney to create an estate plan can save you significant money in the future, providing you with more money in retirement and for your beneficiaries. 

The attorneys at Surprenant & Beneski, PC, have helped many Southeastern Massachusetts residents save money by protecting themselves with a comprehensive estate plan. We can help you prepare for retirement, realize any available tax savings, and protect your assets from creditors. If you want to learn more about saving money through an effective estate plan, contact Surprenant & Beneski, PC, today.

Estate Plans Save Money: Creating a Trust to Reduce Probate Expenses

Many estate planning clients choose to create a trust-based estate plan. Several significant cost-saving benefits come with creating a trust. When creating a trust, your loved ones can avoid a costly probate process (specific to assets within the trust) and you can name beneficiaries who will receive the assets in the trust. 

Without a trust, your assets will be subject to probate court. Your beneficiaries would be exposed to probate fees. The probate process can take months, resulting in additional expenses your loved ones will have to pay. When you create a trust, the assets will automatically be distributed to your beneficiaries outside of the court system. Creating a trust-based estate plan is less complicated than many realize. 

Avoiding Unnecessary Legal Fees By Creating an Estate Plan

Many Americans do not have any type of estate plan. When they pass away, their surviving loved ones could face conflict related to who should inherit their deceased family members’ assets. Massachusetts probate courts will distribute the deceased individual’s assets without a will or trust according to Massachusetts intestacy laws. 

Not only is this process expensive, but it also opens the door to legal challenges and litigation among surviving family members. Creating a clear and effective estate plan removes any doubt about what you would like to happen to your assets after you pass away, potentially saving your loved ones litigation and other legal expenses.

Estate Planning Can Protect Your Retirement Assets from Inflation

As inflation increases, many Americans are understandably concerned about their retirement assets. Inflation can affect your estate plan when the value of your assets increases at a smaller percentage than the inflation rate. Inflation devalues retirement accounts, making it more difficult for retirees to pay for their basic needs. 

The attorneys at Surprenant & Beneski, PC are prepared to help you review your estate plan and adjust to combat inflation. In a volatile economy, diversifying your estate plan can give you the flexibility to overcome inflation. For example, spreading your investments across real estate, bonds, stocks, and other vehicles like insurance can help you protect your assets, increase liquidity, and ensure that your retirement funds continue to grow. 

You may be able to benefit from a real estate investment trust that will provide you with more liquidity. Another option is an insurance policy that pays dividends that can act as a hedge against inflation. Our attorneys are creative and prepared to look carefully at your estate plan and help you save as much money as possible for retirement.

Keep Your Family Home 

Even if you have saved diligently over the years for retirement, a stay in a nursing home can wipe out your estate quickly. Nursing homes in Massachusetts cost on average between $12,000 – $14,000 a month. When you work with the estate planning attorneys at Surprenant & Beneski, PC, we will conduct a long-term care evaluation. We’ll look at your bank accounts, retirement plans, and other assets. We will also determine the cost you may face in the future, including nursing care costs. 

After deciding how long your money will last if you have to pay for nursing care out of pocket, we can implement strategies to avoid these expenses. For example, we can help you create an irrevocable trust so that you can qualify for MassHealth long-term care benefits without spending your retirement assets. We may be able to help you protect your family home instead of needing to sell it to pay for your nursing care fees.

Estate Plans May Help Your Beneficiaries Decrease Tax Liability & Save Money

When you work with Surprenant & Beneski, PC, we can examine your retirement investment strategies and help you decide whether they need to be tweaked. We can also examine your tax strategy. If you own real estate, the value of that real estate has likely increased over the last year. Increased value can expose your beneficiary to significant tax liability if they decide to sell the property after you pass away. You may be able to benefit from an irrevocable trust or charitable trust so that the appreciated value of your real estate doesn’t increase your taxable state.

Protect Your Assets from Creditors

When you create an effective estate plan, you can protect your assets from lawsuits and other creditors. Through estate planning, you can create an asset protection trust to protect your property from legal judgments, creditors, and sometimes even the government. Engaging in an asset protection strategy can help you ensure your loved ones receive your assets, not the government or the plaintiff in a lawsuit. Taking time to work with an attorney to prepare your estate plan may seem like an unnecessary financial burden. However, creating an effective estate plan tailored to your needs and goals can save you significant money in the future.

Learn More About the Long-Term Value of Creating Estate Plans That Save Money

At Surprenant & Beneski, PC, we provide our clients with value-based services, focusing on how we can protect their assets in the future. Our attorneys can help you prepare an estate plan or review an existing estate plan. Contact Surprenant & Beneski, PC, today to learn more about how we can potentially save you money in the long run.