Addressing Debt In Estate Planning

As people age, they may begin to take estate planning seriously. Planning involves examining assets and liabilities. Estate planners in Louisiana might find that debt negatively impacts their intended plans. Older people may have more serious concerns because they may wonder how to deal with the debt situation in relation to estate planning.

Debt and aging

Several factors contribute to debt for older persons. When an older person no longer works and relies on a pension or social security, they could be limited by a fixed income. A lack of savings further harms their ability to make ends meet. However, the person could own a home and other illiquid assets. When engaging in estate planning, the individual may learn that probate typically involves settling estate debts. If the beneficiaries can pay the debts, they may receive the bequeathed property quickly. Others may borrow to pay the debt and then sell the received property to recoup their expenses.

Estate planners might help beneficiaries by giving them insights into how probate works. Including beneficiaries in the estate planning information loop could be a good idea.