People typically think of estate planning as an exercise in document creation. At some point, you create a will or a trust, and you state your wishes with regard to the division of your property. This is certainly at the root of the endeavor, but you could embrace a more hands-on, holistic approach.
Family Home and Vacation Property
If you have lived in the same home for many years, it is naturally going to have sentimental value. This is especially true if you raised your family on the property. It would be meaningful to pass it along to your loved ones after you are gone. However, this is not always the best idea.
When the value of the home is being split among multiple inheritors, they will usually decide to sell the property. Even if you leave the home in its entirety to one of your children, are you sure that they actually want it? Everyone would appreciate the marketable asset, but would they necessarily want to keep the home?
This applies to vacation property as well. For example, let’s say that you have two grown children with their own families. You may envision the whole group spending time at the family vacation house to continue to create memories.
On the surface, this sounds great, but your children are sending your grandchildren to college. From a financial perspective, the liquidity may look far more attractive than the ability to take occasional vacations. At the end of the day, there are many variables, but this is some food for thought.
Collectibles and Other Personal Property
A lot of people are into collecting antiques, art, classic cars, coins, and other objects. As a collector, you cherish your collection, it means a lot to you. In addition, you know what everything is worth if you ever decide to sell something in your collection.
Your children are probably not in the same position. Unless they share your passion for that particular type of collecting, they will not be well-equipped to negotiate sales. Plus, they may have no particular interest in the collectibles aside from the sentimental value.
If you have items such as these, you may want to consider liquidation in advance. The same thing applies to personal property with significant value that may not be collectible.
Eventualities of Aging
There is another element you should be take into consideration. Seven out of every 10 seniors will need help with their activities of daily living eventually. As you get older, it will inevitably get more difficult to get around and take care of all of your day-to-day needs. When you have a house that is much larger than you actually need, everything can be much more difficult.
If you move into a smaller place while you are still fully capable of managing on your own, you will be prepared for whatever comes your way later on. This can also be a positive move from a financial perspective. And on a practical level, you don’t have to spend as much time and/or money on maintenance.
Attend a Free Seminar!
We provided a little bit of insight in this post. You can get a whole lot more of it if you attend one of our seminars. There is no admission charge, and the sessions are held at convenient locations in and around Oklahoma City. You can see the dates if you head over to our events page, and if you decide to join us, follow the instructions to register.
Need Help Now?
Learning is great, but at some point, you have to take action to put a plan in place. If that time has arrived, we are here to help. When you work with our firm, we will provide personalized attention. We will gain an understanding of your situation and your objectives, and we will help you create a plan that ideally suits your needs.
You can schedule a consultation at our Oklahoma City estate planning office right now if you call us at 405-843-6100. There is also a contact form on this site you can fill out if you would rather send us a message.
After helping his own family deal with a lengthy probate and the IRS following his father’s untimely death in a farm accident, Larry Parman made a decision to help families create effective estate plans designed to reduce taxes, minimize legal interference with the transfer of assets to one’s heirs, and protect his clients’ assets from predators and creditors.