When people in Florida think about how they can protect their loved ones in the future, they may think about creating a will or developing an estate plan. In 2019, the youngest members of the baby boomer generation will turn 55, an age when many turn their attention to planning for retirement and even further ahead. However, according to one survey, as many as 42 percent of baby boomers don’t even have a basic estate plan. Many others have a will or basic plan that’s out of date both in terms of the law and the creator’s personal relationships.
Baby boomers are the wealthiest single generation in the country’s history, with as much as $30 trillion to pass down in the coming decades. However, a significant amount of that wealth could be squandered on taxes, fees and other expenses if they do not plan for how their estate will be managed in the future. Wills, trusts and powers of attorney are all critical documents for people to use when planning for the future. In addition, insurance policies and transfer-on-death accounts can be important.
Life insurance can be used to pay final expenses like medical bills and funeral costs. In addition, it can help to address costs that can arise during probate, including fees for professionals like attorneys and accountants. While the federal exemption for estate taxes has expanded substantially, many people may still face state taxes. Life insurance can allow those bills to be paid even if the remainder of the estate is in limbo.
People who are considering their options for the future can include life insurance as part of an overall plan. An estate planning attorney can help a client develop a comprehensive plan and create the documents that can make it a practical reality.