Estate planning and looking ahead to your retirement must be working together regardless of your age. This means scheduling a consultation with an experienced estate planning attorney. Your retirement funds might also be known as your 401(k)s, your deferred compensation and 403(b) plans and your IRAs. These are all your assets that you build up during your working years without paying income tax.
Once you reach age seventy and a half however, you must begin taking minimum distributions and then pay the income taxes on those distributions. There are special advantages as you approach elder law estate planning. Elder law planning keeps assets from the nursing home costs and many people will face an increasing risk for spending some time in the nursing home if they develop one or more long term care problems. Estate planning can transfer these assets to beneficiaries well in advance with the minimum amount of legal fees, taxes, and court costs. Furthermore, this can help to minimize family conflicts over inheritances.
Sitting down with an experienced estate planning attorney who is knowledgeable about elder law can help you discover the right approach to take so that you are both compliant with Medicaid rules and being prepared for your future. Elder law and estate planning can work hand in hand as you approach your retirement income distributions the right way.