• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Trust Administration
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Elder Law
        • In-Home Elder Care
        • Medicaid
        • Planning for Long-Term Care
      • Estate Planning
        • Business Succession Planning
        • Estate and Gift Tax
        • Estate Planning for Blended Families
        • Estate Planning for Parents
        • FAQs for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Taxes on Inheritances in Vermont
      • Incapacity Planning
      • IRA & Retirement Planning
      • Gift, Estate, and Inheritance Taxes
      • Legacy Wealth Planning
      • Philanthropy and Estate Planning
      • Pet Planning
      • Revocable Living Trust
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » These Steps Will Lead to the Ideal Estate Plan

These Steps Will Lead to the Ideal Estate Plan

October 5, 2021 by Ellen LaPlante

estate planning stepsA lot of people do not have estate plans in place because they simply do not know where to start or what to do. With this in mind, we are going to share some steps that you can follow to create a framework.

Inventory Your Assets

The first order of business will be an asset inventory because you have to identify what you expect to be able to pass along to your loved ones. This would include family heirlooms and other personal possessions that are meaningful to you.

Another element that you should keep in mind when you are tallying up the value of your assets is the potential for estate tax exposure. The federal estate tax carries a 40 percent rate, so it can have a significant impact on your family’s future.

The majority of Americans do not have to be concerned about this tax because there is an $11.7 million exclusion. This is the amount that can be transferred tax-free, and the remainder would be subject to the tax.

This figure is going to remain in place indexed for inflation through 2025, but on January 1, 2026, it is scheduled to be reduced to $5.49 million. In Vermont, we have a state-level estate tax with an exclusion of $5 million.

Evaluate the Impact of Income Loss

You should have an estate plan in place as soon as you are a self-supporting adult, and it becomes essential when you have people relying on you. If you are putting your plan in place when you have dependents in the home, you should evaluate your family’s financial need.

Life insurance can be used as an income replacement vehicle, and you should empower an adult to manage assets on behalf of the child. This can be done through the utilization of a living trust or a testamentary trust, which is a trust that is embedded in a simple will.

Even if you have a trust, you should name a guardian for dependent children in a will.

Look Past a Simple Will

Far too many people oversimplify the estate planning process. They think that you execute a simple will and you are good to go, but in fact, there are other options.

When a will is used, it is admitted to probate, which is a costly and time-consuming legal process. There is also a loss of privacy, because the records are available to the general public.

Plus, the executor will distribute assets to the beneficiaries in lump sums with no asset protection or spending safeguards.

If you were to use a living trust as your asset transfer vehicle, you would be the trustee while you are living, so you would not lose control of the resources. After your death, the trustee that you named to succeed you would distribute the assets to the beneficiaries outside of probate.

In addition to the probate avoidance benefit, you can include a spendthrift clause, and the principal would be protected from the beneficiaries’ creditors. With regard to spending guardrails, you could instruct the trustee to provide limited incremental distributions.

This is one type of trust, and it is widely utilized, but there are other possibilities that you should explore before you make any decisions.

Confront the Possibility of Cognitive Impairment

No one wants to think about the possibility of contracting Alzheimer’s disease, but the cold hard truth is attention-getting when you know the facts. According to the Alzheimer’s Association, 32 percent of elders that are 85 years of age and older are Alzheimer’s sufferers.

That is a significant number, and your life expectancy is 85 years if you are a 67-year-old man, and it is 87 years for a woman that is celebrating her 67th birthday. This is not the only cause of cognitive difficulties, so you should address this reality when you are planning your estate.

If you have a living trust, you can name a disability trustee to administer the trust in the event of your incapacity. A durable power of attorney for property can be used to name a financial representative if you do not have a trust.

Even if you are going to use a revocable living trust as your estate plan centerpiece, you should have a durable power of attorney for property to account for property that was never conveyed into it.

Advance directives for health care should be part of the plan as well. A living will is used to state your life support preferences, and you can name an agent to make medical decisions on your behalf that are not related to life-support utilization in another durable power of attorney.

Engage an Estate Planning Lawyer!

When you have a general idea about the way you want to proceed, it is time to work with a Burlington, VT estate planning lawyer to execute the plan. If you are ready to do just that, you can call us at 802-879-7133 to schedule a consultation appointment.

There is also a contact form on this site you can fill out if you would rather send us a message, and if you reach out in this manner, you will receive a prompt response.

 

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • How to Apply for Senior Medicaid in Vermont - December 11, 2022
  • Planning for the “Silver Tsunami” - November 1, 2022
  • Discharge of Indebtedness Income and Student Loan Forgiveness - October 27, 2022

Filed Under: Uncategorized Tagged With: incapacity planning, Estate Planning, Estate Tax, wills and trusts

Other Articles You May Find Useful

Essex Junction elder law attorneys
What You Need to Know about Elder Abuse
Essex Junction Medicaid planning attorneys
How to Apply for Senior Medicaid in Vermont
Planning for the “Silver Tsunami”
Discharge of Indebtedness Income and Student Loan Forgiveness
More than Just Salad Dressing: The Ongoing Saga of Newman’s Own Foundation
Essex Junction Medicaid planning attorneys
Does My 401(k) Account Count for Medicaid Eligibility?

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

Sign up to Unsworth LaPlante's estate planning blog to receive all the latest news and updates.

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.