Failing to properly plan for potential expenses in your estate can leave loved ones or your personal representative grappling with problems. While you may not be around to address these issues after you pass away, your loved ones may end up trying to sort through the confusion of unanticipated costs associated with closing out your probate case. By thinking about this in advance, you can reduce the possibility of sudden expenses or further stress on your family during an already difficult time.
There can be multiple estate costs that can apply based on how you structure your estate and the assets inside them. For example, end of life health expenses combined with estate administration fees and funeral costs could add up quickly. You may need to tap intended retirement funds or those funds set aside for your loved ones to help pay for your medical care.
Furthermore, there are specific rules associated with qualifying for Medicaid known as Medi-Cal in California. Failing to properly plan for this process could mean inability to qualify for Medicaid right away.
A second concern is asset liquidity. Without appropriate planning, funds can get tied up in assets that heirs may not be able to use to access cash in the event of a financial emergency.
Finally, family hardship is another common challenge associated with underestimating estate costs. If you force your loved ones to cover substantial final expenses such as funeral and burial costs, hiring an estate planning or probate attorney and court filing fees can all add up and cause further financial distress. In order to reduce the possibility of these challenges, work with a Pasadena estate planning lawyer to document your estate plan in writing. A lawyer can help you think about some of the costs you might have overlooked in the planning process to ensure that your family and chosen representatives are able to avoid any further challenges if something happens to you.
