In Alabama, estate planning practices help estate owners protect their assets. The process involves separating key assets from the estate and finding a solution that reduces tax implications for their family. Reviewing strategies followed by estate planning lawyers in Cullman, AL shows owners what options are most suitable for their circumstances.
Reducing the Value of the Estate
Transferring assets out of the estate reduces the value of the estate. The owner has the right to sell the assets or transfer them to a family member. An irrevocable trust is also helpful for transferring assets out of the estate. Once the assets are no longer part of the estate, these are protected against the probate process.
Early Transfer of Ownership and Legalities
Estate owners who are diagnosed with a progressive disease, such as Alzheimer’s disease, should transfer ownership of their assets early. The owner has one year to sell or transfer ownership of their assets before they are admitted into a nursing home. Any assets that the estate owner has when they are admitted into the nursing home are subject to seizure or collection for payments for nursing home services.
If they need Medicaid or SSI to pay for their care, the estate owner cannot have any assets in their name. The government programs won’t provide payments for their care until the assets are sold and proceeds are used to pay for services first. Emergency Consultations Available for estate owners who need quick assistance.
Stipulations of Trust Funds
Trust funds help estate owners provide funds to their family members directly. Stipulations added to the trust funds prevent unauthorized use of the trust funds. For example, the estate owner adds stipulations to prevent access to the money until the heir is a specific age. The provisions also prevent a caregiver from accessing the money.
In Alabama, estate planning practices mitigate common risks for estate owners. The strategies address issues involving probate and nursing homes. Early transfers to family members help the owner avoid the collection of assets by nursing homes. An irrevocable trust takes the assets out of the owner’s name and provides the assets to their heirs without inheritance taxes. Estate owners who want to review more strategies can contact estate planning lawyers in Cullman, AL right now. We have emergency consultations available for estate owners who need quick assistance.
