Thanks to advances in medical technology, living a long and active life is increasingly possible. As a result, the possibility of living into one 80s and 90s has a direct bearing on the process of estate planning. This is particularly true for high-net-worth individuals in Texas and across the country.
The challenge that many people of high net worth face is determining when exactly to transfer their assets to the next generation. If a person passes away at 80, then his or her heir could potentially inherit the intended assets at age 50, for example. However, if the same person lives past 100, then his or her heir might not end up inheriting the intended assets until after he or she has turned 70, 80 or even 90.
Failure to proactively think through what can happen in the event one lives a long time may lead to destructive family confrontations. A properly crafted estate plan can spell out exactly what will happen to one's assets in such a situation. Transferring assets prior to one's death may actually solve some potential issues, including the sudden disappearance of assets, family disputes and even lawsuits. In addition, with dementia still a possibility for some older adults, transferring assets sooner than later may be beneficial.
The process of creating an estate plan can seem overwhelming for people of all asset levels. However, estate planning is an important part of life planning. An attorney in Texas can help draft a well-thought-out estate plan that accurately reflects one's best interests and personal wishes.
Source: Forbes, "Estate Planning For The Ultra-Wealthy When Living To 120 Or Beyond", Russ Alan Prince, Jan. 18, 2017