Each Louisiana adult will benefit from the protections provided by an updated and carefully crafted estate plan. However, one of the reasons why you may be avoiding it is that it can be a complex legal and financial process involving complicated decisions and additional costs. It may be helpful to first understand what to expect from the estate planning process, including the fees you may have to pay, in order to plan appropriately.
At one point, estate planning fees were tax deductible. They are no longer deductible, but there are other ways you may be able to streamline costs while still creating an effective and strong estate plan. With the peace of mind and control that estate planning can provide you, fees and associated costs are a small price to pay for the ability to look to the future with confidence.
Positive aspects of estate planning
Estate planning is the process of creating legal documents that allow you to decide what you want to happen to your property after you pass. You can also decide who should be a guardian for any minor children, outline your medical preferences and much more. There are significant benefits to having an estate plan, including having the final say over sensitive and complicated matters. While relatively recent tax law changes mean that you can no longer deduct estate planning costs from your taxes, this may not impact you as much as you assume.
Before the changes, only fees related to the production of taxable income were deductible. While helpful, this may not be a significant deduction, depending on the details of your individual situation. Because of the restrictions related to these deductions, it was actually quite complex to claim them, and it is likely that you will not necessarily find the lack of a deduction to make a difference in your taxes.
Don’t let misconceptions affect you
Do not allow misconceptions about tax deductions, fees or other aspects of estate planning to affect your decision to plan for the future. Having the right documents and plans is not only convenient for you, but it is also important for your loved ones. Creating this plan is an act of love and concern, and it is beneficial for all adults of all income levels. If concerns over fees is holding you back, it may help to seek knowledgeable insight into the specific financial requirements associated with creating an estate plan.