3 Tips for Protecting Your Estate in an Economic Downturn

April 14, 2023

The current economic landscape has rattled the confidence of all of us. Though the future can seem uncertain, there are steps you can take to set yourself up for success and protect your estate from long-term consequences. 

If you’re not sure where to begin, here are a few tips for protecting your estate in times of uncertainty:

1. Prioritize a thorough estate and asset protection plan.

People often think of estate planning as a luxury, not a necessity, during economic downturns, but the opposite couldn’t be more true. Investing in an estate plan ensures you, your beneficiaries and your assets are safeguarded during turbulent times and is a small price to pay to protect your nest egg. 

2. Review your investment strategy. 

Now is a good time to sit down with your financial advisor and review your portfolio. How do you hold your wealth? Whether it is in cash, real estate, stocks or bonds – evaluate your assets and determine if any tweaks or changes need to be made. 

3. Consider tax liability.

During periods of inflation, real estate often sees a price increase. If you own real estate, this increase in value could expose your beneficiaries to future tax liability. There are ways to avoid this liability with vehicles like irrevocable trusts and charitable trusts. For example, assets held in an irrevocable trust generally become exempt from the grantor’s taxable estate. If real estate is part of your portfolio, consider these tools for reducing tax liability.

If you’re overwhelmed or feeling unsure, we encourage you to turn to your key advisors, such as your attorney, financial planner, and accountant, to review and discuss your estate plan. By planning in advance, you and your family have more options, control and peace of mind. 

Contact Our Indiana Estate Planning Attorneys Today To Get Started

If you’re wondering where to begin on preparing and protecting your estate from long-term consequences in the time of an economic downturn, Applegate & Dillman Elder Law can help. It’s always better to have your estate and financial documents professionally drafted and organized, especially as we enter an uncertain economic climate. Contact us online or call us at (317) 492-9569 to schedule a consultation with our experienced Indiana estate planning attorneys today.

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