![\"Financial](\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2018\/08\/finances-for-kids.jpg\")
<\/p>\n<\/p>\n
Whether or not you\u2019ve been financially responsible throughout your life, there will come a time when you need to consider estate planning. Thinking about getting older and how we will afford long-term care can be unpleasant. To that end, many Americans ignore it. In fact, 60 percent of those surveyed say they have no will or estate-planning in place<\/a>.<\/p>\n Even for those who are not wealthy, estate planning is important for a number of reasons. And if you think that failing to execute estate plans is only hurting you, think again. The plans you make for your golden years \u2014 including making decisions about any assets and possessions when the time comes to relinquish them \u2014 is important not only to you, but also to your children. Your lack of planning can cause financial burden and even potentially damage your children\u2019s credit score.<\/p>\n Let\u2019s take a look at some of the ways that poor estate planning \u2014 or a complete lack of planning \u2014 can unintentionally harm your loved ones.<\/p>\n As much as we\u2019d all like to believe we will have all of our financial ducks in a row when we reach our golden years, things don\u2019t always work out that way. According to a recent study<\/a>, more than 70 percent of U.S. seniors between 65 and 74 years old carry some level of debt. The average for those in this age group that carry debt is $108,700<\/a>, and those over 75 that carry debt have an average of $57,500<\/a>.<\/p>\n When someone dies with debt, debt-collection attempts can unfortunately become the burden of children or other heirs. Unfortunately having an estate plan will not necessarily protect your children from debt collectors. You can, however, plan for a portion of your life insurance policy or other assets to pay off your debts. This will help ensure that your children aren\u2019t left scrambling to pay your debts or fend off debt collectors.<\/p>\n It\u2019s important to consider the potential tax implications of your decisions. While estate tax has been virtually eliminated at both the federal and state levels, monies outside of an estate that have never been taxed \u2014 such as a 401(k) retirement account \u2014 and are left to your children, could be subject to tax. Property that is left to heirs can also be taxable in certain situations.<\/p>\n Many of us assume that we don\u2019t need to have an estate plan in place. We think that simply relinquishing money and property to our children via a will or other written documentation will suffice. But without the help of a professional financial or estate planner, you could be opening your children up to tax liability that will cause them a financial burden. Tax debt is one of the leading reasons for financial difficulty and credit issues. And if you do not have a legally valid will in place (for example, you\u2019ve written something up but never made it binding via a witness and notary), your children may potentially incur the costs of filing probate. Therefore, it\u2019s imperative to ensure that any assets you intend to leave to your children don\u2019t end up costing them money in the long run.<\/p>\n None of us like to think about a time when we may need part- or full-time care. It\u2019s unpleasant enough that we ignore it entirely and often make no plans at all for the possibility of illness or incapacitation.<\/p>\n Even the best of intentions on the part of your children to care for you can quickly become unrealistic. Whether they opt to care for you in their own home or to rely on the assistance of a long-term care facility, the costs can quickly become overwhelming. In these scenarios, the children of aging parents often turn to high-interest credit cards<\/a> or otherwise max out their existing credit in an attempt to pay for care or end-of-life expenses.<\/p>\n The U.S. government estimates that 70 percent of people aged 65 today will require some form of long-term care during their lives. Therefore, having an estate plan that includes long-term care planning is imperative. Working with a professional will help you understand all of the options available to you through Medicare and other resources to ensure you do not leave your children with undue financial stress in your later years or at the time of your death.<\/p>\n It\u2019s important to consider the stage of life your children will be in during your retirement years. For instance, your grandchildren might just be starting college, or even buying their first home and will need their parents\u2019 assistance. If your debts or assets become a financial burden for your children, it will impact their ability to qualify for loans<\/a> or credit that can help their own children with college expenses or a down payment.<\/p>\n It\u2019s important to think about the impact your estate planning decisions will have on your children and loved ones. By seeking the advice and professional service you need in order to execute proper planning, you can avoid putting your children in a bad financial situation or negatively impacting their credit.<\/p>\n If you or your loved ones are in need of credit help<\/a>, contact CreditRepair.com<\/a> today at 833-333-2283.<\/span><\/a><\/span> We offer a free credit consultation and free access to your credit report summary.<\/p>\n Carry on the conversation on our social media platforms. Like and follow us on Facebook<\/a> and leave us a tweet on Twitter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Whether or not you\u2019ve been financially responsible throughout your life, there will come a time when you need to consider estate planning. Thinking about getting older and how we will afford long-term care can be unpleasant. To that end, many Americans ignore it. In fact, 60 percent of those surveyed say they have no will […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[158],"tags":[41],"yoast_head":"\nThey could end up bearing your debt burdens<\/strong><\/h2>\n
You can cause them a tax bill<\/strong><\/h2>\n
Your long-term care needs can cause financial stress<\/strong><\/h2>\n
You can impact their ability to qualify for loans<\/strong><\/h2>\n
Learn How it Works<\/a><\/div>\n<\/div>\n<\/div>\n