“...but in this world nothing can be said to be certain, except death and taxes.” The famous quote is still true today as both are increasing every year. As anyone who has personally dealt with loss knows, when a loved one dies, those left behind face major challenges, not only emotional and logistical, but financial as well. 

THE FINANCIAL COST

According to the National Funeral Directors Association, following a loved one’s death, the total bill—including the funeral and hiring all of the other professional support—cost families an average of $12,702. The average cost of a funeral was $7,267, up 7.6% in the last 5 years. On top of the funeral, families paid an average of $5,846 to hire additional professionals, such as lawyers, financial advisors, and realtors. The bill charged per person for these services include the following average costs:

Professional Services 

• $3,910 lawyer fees

• $4,461 real estate professionals

• $2,456 accountants

• $1,637 therapists or social workers

Notably, the lawyer’s fees were nearly double for estates that required the court process of probate, which was the case for one-third of families surveyed. When you include lawyers, court costs, and all of the other related fees, the total cost to complete probate for families averaged $16,800.

Fortunately, by working with us, Simpson Law Firm, your family can avoid the time, expense, and emotional burden associated with probate. For example, by placing assets in a properly created and maintained Revocable Living Trust, assets held by the Trust will pass to your loved ones without the need for probate or any court intervention following your death or incapacity.

Keep the Cost Low

With informed planning, you can avoid the following services and save money. 

• Asset Protection

• Wishes in writing to avoid family conflict in court

• Funding for Long Term Care

• Estate Tax Mitigation

• Proper Designation of beneficiaries

• Correct title on property and accounts to avoid probate

Sit down with us, Simpson Law Firm, for an Estate Planning Session to find the most effective and affordable planning solutions for you and your family based on your family dynamics, assets, as well as your overall goals and desires. 

Paying The Final Bill

So how did families pay for all of these expenses? Only 1 in 7 families had any of the costs associated with their loved ones’ death paid in advance or were able to use payable-on-death funds. Additionally, more than 50% of families had to deal with estates that included debt. To foot the bill for these expenses, 36.1% of respondents used their own savings or investments, while 42.4% used their checking accounts or credit cards.

For most families, the financial costs associated with loss were exacerbated by a lack of information about exactly how much money they should expect to spend, notes internal medicine physician Shoshana Ungerleider, MD, in the report’s section on death’s financial cost. Compounding that stress, Ungerleider says, was the families’ fear of making a mistake that will make their financial burden even worse.

“A majority of families find themselves unprepared for and under-informed about the real financial costs of death, with few available resources for finding out,” writes Ungerleider. “They can spend months or years terrified that a wrong move will wipe out their inheritance or even their own savings.”

As an example of what such a mistake might look like, Ungerleider notes that a lack of proper estate planning can lead to the deceased’s home being seized after death “to pay off expenses incurred through Medicaid, even if the family member who was their primary caregiver is still living in the home.”

This is another area where thoughtful estate planning can be invaluable. At Simpson Law Firm, we offer planning strategies that can help you and/or your senior parents qualify for Medicaid and other benefits, without putting the family home or other assets at risk. Moreover, we will serve as both you and your family’s trusted advisor at all times, so you never have to worry about anyone impacted by your plan being under-informed about death’s many responsibilities.

This article is a service of Simpson Law Firm. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. We offer an Estate Planning session, during which you will get more financially organized than you’ve ever been before and we will assist you to make all the best choices for the people you love. You can begin by contacting us here, https://www.hollysimpsonlawfirm.com/contact-us or calling us at 803-764-9555 and one of our friendly client service assistants will help you set up your consultation!