Safeguarding Assets As You Age

Safeguarding Assets As You Age

If you want to protect your assets, you’ll need a Knoxville, TN elder law lawyer you can trust. At Carpenter & Lewis PLLC, we specialize in estate planning and business law, and our focused approach means we can provide you with the best guidance possible. Here are some methods to protect your assets as you grow older:

Comprehensive Estate Planning

Estate planning is more than just writing a will—it encompasses a range of tools including wills, trusts, powers of attorney, and healthcare directives. A well-crafted estate plan ensures that your assets are managed and distributed in the manner you prefer, and it can also significantly reduce the taxes your estate and heirs might owe.

Durable Power Of Attorney

A durable power of attorney is a legal document that grants someone you trust the authority to handle your financial affairs if you become incapacitated. This can include paying your bills, managing your investments, and making financial decisions on your behalf. It’s essential to choose someone who is reliable and has a good understanding of your wishes and values.

Healthcare Directives

A healthcare directive, also known as a living will, specifies your wishes regarding medical treatment if you become unable to communicate your decisions due to illness or incapacity. Coupled with a healthcare power of attorney that designates someone to make medical decisions on your behalf, this ensures that your health care preferences are followed and can prevent financial exploitation related to medical care costs.

Revocable Living Trusts

A revocable living trust is a powerful tool for asset management and estate planning. By transferring your assets into a trust, you can maintain control over them during your lifetime while specifying how they are to be handled after your death.

Regularly Reviewing And Updating Estate Documents

Life changes such as marriage, divorce, the birth of a grandchild, or the death of a beneficiary can all necessitate changes in your estate plan. By reviewing your estate documents regularly, you can ensure that your asset distribution plans remain aligned with your current wishes and that all documents comply with current laws.

Long-Term Care Insurance

The costs of long-term care can erode your savings rapidly. Long-term care insurance can cover these costs without depleting the estate you intend to leave to your heirs. Purchasing a policy when you are relatively young and healthy can reduce premiums and increase the likelihood of approval.

Consider The Impact Of Taxes

Understanding and planning for the impact of various taxes—estate tax, inheritance tax, income tax—on your assets can prevent your beneficiaries from receiving a smaller inheritance than you intend. Strategies such as gifting assets during your lifetime or setting up charitable trusts can be effective ways to minimize taxes and benefit your heirs.

Contact Our Office Today

Safeguarding your assets as you age requires careful planning and proactive management. At Carpenter & Lewis PLLC, we have the experience and dedication needed to help you protect your wealth and ensure it is passed on according to your wishes. If you’re ready to start planning for your future or if you need to update existing plans, contact us today.