We have all been hearing on the news that inflation is on the rise. The definition of inflation is the increase in prices that results in a decrease in our purchasing power. We feel the pain of inflation at gas stations and grocery stores. But what you may not have realized is that inflation affects your estate plan, and you will want to preserve your assets for yourself and your heirs.
Besides a will or trust, many estate plans also include your life insurance, retirement account, real estate and other assets. The value of your assets growing slower than the rate of inflation can affect your estate plan. This means the stocks in your IRA accounts aren’t earning as much as they used to. And the value of your real estate is not increasing at the same rate.
The main reason you have an estate plan is to manage your assets, so you can retire comfortably and then pass on everything to your heirs when you are gone. Therefore, you want to maximize your estate plan.
So, what can you do?
One way to preserve your assets for yourself and your heirs is to review and update your estate plan periodically. It would be best if you did this every 3-5 years or when any life-changing event happens. Now is a good time if you haven’t looked over your estate plan recently. For financial reasons, here are some items to review:
Don’t worry; working with an experienced estate planning attorney will help you build a solid plan for your retirement and when you pass away. It will ensure you and your beneficiaries are protected during inflation and other hard economic times.
Talk to the experienced probate attorneys at the Estate and Probate Legal Group about protecting your estate plan during inflation. Contact us today at 630-864-5835.
AREAS WE SERVE: Cook, DuPage, Kane, Lake and Will counties