Always ask your estate planning attorney about the best way to supplement your estate plan with various insurance policies.
These types of resources can prove very useful, especially if you cannot leave a large sum of money to loved ones — or if there’s any chance your estate may owe considerable debts when you pass away.
While people’s needs for different types of insurance policies vary based upon their age, marital status, and unique sets of responsibilities, you should be able to gain a fairly clear understanding about the types of policies you may need by reviewing the list set forth below. Should you already be on Medicare, be sure to consider purchasing a Medicare-gap insurance policy so you can minimize all of your medical bills for those who survive you.
Different Needs You Can Often Address with Insurance Policies
- Cremation and Burial Expenses. One day your family will need funds to handle your remains. This is often best handled by purchasing either a burial policy or a general insurance policy;
- All Estate Debts and Taxes Due. Always plan ahead and ask your Minnesota estate planning attorney which types of trusts and other accounts can help you minimize the estate taxes that may one day be brought against your estate. Also, consider funding one or more insurance policies to help your survivors cover all debts left after you pass away;
- Ample Funds to Cover Immediate Living Expenses. While most states do allow a surviving spouse to designate a specified amount of money to live on for about a year, it’s always wise to have added funds available through one or more fully funded insurance policies;
- Money to Help Your Survivors Cover Long-Term Living Expenses. This is especially important when the deceased person was the family’s main or only breadwinner. If possible, try to generously fund one or more insurance policies so that your surviving spouse will have enough to live on for the remainder of his or her life. Since anyone can pass away prematurely, try to adequately provide for any minor children who survive you;
- Education Expenses. When you pass away, you may still have children wanting to attend special private schools and/or colleges and graduate schools. Be sure to ask your Minnesota estate planning attorney (and your insurance broker) how best to fund one or more policies to address this situation – in addition to funding one or more trust accounts;
- Last Medical Expenses. Even survivors whose spouses had excellent private health insurance and Medicare-gap policies often find themselves billed for large amounts not fully covered. That’s frequently because today’s end-of-life care can be very expensive. If possible, also try to obtain long-term care insurance while you’re young enough to qualify for it since it can save your family a significant amount of money, too. Finally, ask your Minnesota estate planning attorney if you should also set up a medical savings account and fund a special insurance policy for this same purpose.
Minnesota Estate Planning Attorneys
An experienced Minnesota estate planning lawyer can help walk you through the complicated process of establishing a workable estate plan. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 424-0398.
