When you think about estate planning, your assets probably come to mind and your main concern is what you want to leave to your heirs.
However, depending on the nature and extent of those assets, and even your state of health, there are other important aspects of estate planning to consider.
Your business and liquidity
Perhaps you want to ensure that your successful business will continue after you are gone. If you plan to leave the company to your heirs, they must have sufficient liquidity in order to take over the operation of the business. You will also need liquidity if a buy-sell agreement is in place to transfer the business. A life insurance policy will help pay off debts and provide the necessary liquidity.
The majority of people over the age of 65 will require long-term care. Will some sort of disability affect you? In California, the average monthly cost of a semiprivate room in a nursing home is $9,794, while for a private room, the monthly cost is $12,167. Long-term care insurance is worth looking into, but the sooner the better since the price increases each year.
The government is always in need of revenue and taxes of various kinds provide that money. There are no state inheritance, estate or gift taxes in California. However, in 2022, under federal law, estates with a value of $12.06 million for individuals or $24.12 million for married couples must pay an estate tax to the Internal Revenue Service. Even if your estate is exempt from an estate tax, there may be capital gains taxes to pay. Your attorney can help you address the relevant tax matters and any other concerns and ensure your peace of mind when you begin putting your estate plan together.