There is a constant ebb and flow of economic prosperity, and it’s not always easy to predict where and when the next “crisis” may come up. People are naturally anxious when our future is uncertain, but there are strategies that you can use to protect and preserve your hard-earned assets. Estate planning has the tools you need to gain the stability and peace of mind you deserve.
Assess the Economic Climate to Update Your Estate Plan
During periods of financial uncertainty, it’s important to stay up to date on changes in the economic climate. No one has to become an expert on the stock market, but keeping track of market fluctuations, interest rates, and inflation rates or expert economic forecasts can give you an idea of when it’s time to update your estate plan. Understanding the potential risks your assets may face can help you make informed decisions on your estate planning strategy.
Market changes can make a huge impact on the value of your estate. It’s a good idea to think about how your current financial situation may be affected by outside economic factors. For example, if the rate of inflation is higher than your return on investments, or a balloon loan that’s set to inflate to skyrocketing interest rates, your current estate plan may not align with your goals. Updating your estate plan can mitigate potential risks and in the best of times, open you up to new opportunities.
Asset Protection and Tax Planning
One of the best advantages of effective estate planning is asset protection. Through strategic maneuvering, your estate plan can reduce risk, and prevent your assets from hemorrhaging before they serve their purpose. The government often makes big changes to tax laws and regulations during uncertain economic conditions in an effort to slow potential market downturns and maintain stability. These tax laws can potentially impact your state plan with additional tax burdens or legal stipulations. Certain estate planning tactics could create beneficial tax shelters or preserve and even grow your assets.
Crisis Planning
Hopefully you have an estate plan in place that can withstand changes in the price of goods and services. If you haven’t created one yet, it’s not too late to explore strategies to increase your safety net and leave enough behind for your beneficiaries. Through crisis planning, your estate plan may enable you to utilize Medicaid benefits even if you’re above the asset threshold. By qualifying for benefits, your cost of living can be covered without having to tap into funds you reserved for your estate.
When the economic future is uncertain, it highlights the importance of continuity planning. There’s always a chance that you will need a robust contingency plan for your estate. You may want to utilize tools like powers of attorney and beneficiary designations to provide clear instructions and maintain some control over your estate.
Partnering with Estate Planning Professionals
All this information about economic downturns may seem a little gloomy, but estate plans are a great way to mitigate risks in a positive way. Working with empathetic estate planning attorneys can make the process a joyful act of love. It can be exciting to see how your hard work is paying off, and that your loved ones will be better off for it.
Everyone should have some form of an estate plan, whether the economy is booming or not. Safeguarding your wealth and legacy is simple as long as you stay informed and continue updating your estate plan as needed. At HighPoint Law Offices, PC, we offer clients helpful estate planning workshops to better prepare our community for the future. If you’re ready to take control of your destiny in uncertain times, you’ve come to the right place. Call us today at (215) 997-9773 to schedule your free initial consultation.
HighPoint Law Offices PC
Latest posts by HighPoint Law Offices PC (see all)
- The Best Way to Ensure Care For Your Special Needs Child - September 15, 2023
