During the estate planning process it’s important that you remember the following costs and expenses that may need to be paid upon your death.
- Funeral costs. Depending on how elaborate the funeral, an average cost can run between $5,000-$10,000.
- Medical bills. Doctor, hospital, long-term care and prescription bills incurred during the decedent’s lifetime can add up quickly.
- Credit Card bills. Any outstanding debts that the decedent acquired during life must be paid.
- Federal Estate taxes/State Death taxes. If the total value of the estate exceeds the federal exemption, an estate tax must be paid within 9 months of death. Twenty states have a state estate tax or state inheritance tax. In Arizona, there is no state death/inheritance tax, but there may be an inheritance tax in the state your beneficiary resides.
- Federal/State Income taxes. The estate is responsible for filing and paying any taxes due for the year of death; and paying any income taxes accruing during the estate administration.
- Probate and Administration costs. In Arizona, an average cost of a probate is approximately 5-7% of the value of the total estate at death.
If these costs aren’t taken into consideration during the estate planning process, your loved ones may be forced to sell property or other assets for pennies on the dollar. With proper planning today, this can be avoided to ensure that your estate has the necessary liquidity to cover these costs without jeopardizing or forcing the sale of other assets.
Morris Hall Can Protect You in Today’s Litigious Society:
We live in a litigious society, where over 1 million lawsuits are filed every year in America alone. Financial predators are looking for ways to take funds from others and often use litigation as their means to do so. At Morris Hall we provide your assets and your loved ones with important protections that can prevent financial predators from taking advantage of you. We do this through proper and current estate planning techniques. With an MH living trust, we can also protect your property, assets and loved ones from probate, estate taxes, gift taxes, creditors, Medicaid spend-down, conservatorship or guardianship proceedings, ex-spouses and more. A living trust also keeps your asset and beneficiary information private and secure to avoid giving financial predators information to use against you and your family. Without a living trust, this information will be made public. For those living in Arizona, we serve the areas of Phoenix, Mesa, Gilbert, Fountain Hills, Scottsdale, Cave Creek, Prescott, Flagstaff, Sedona, Tucson, Sonoita, Arrowhead, Avondale, Goodyear and Tempe. In New Mexico we serve the areas of Albuquerque, Santa Fe, Las Cruces, Rio Rancho, White Rock, Alamogordo, Truth or Consequences and more. Contact us today at 888.222.1328 to schedule an appointment with an attorney in your area!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.