While the short-term life expectancy hasn’t risen by much — in fact, there are some factors currently at play that are driving it down — the long-term arc favors an increase. After all, we know more than ever before about preventative health and treating chronic diseases. Technology should only improve in both areas in the next 20 years.
But in that same amount of time, your estate plan will be faced with some monolithic challenges if you hope to leave your loved ones something to help at the end of your run. By knowing what these challenges are in advance, you can better plan for the years ahead. Let’s examine!
1. Increased Medical Expenses
The first major challenge that your estate plan will face in the next two decades is the meteoric rise of health insurance premiums as well as healthcare costs themselves. The Affordable Care Act (ACA) did little to help the situation, and without any priorities to address it out of Washington, the problem will likely get worse. National spending currently is in the single-digit trillions with no sign of slowing down.
2. Higher Cost of Living
Along with the rise in healthcare, there is the increased cost of everything else. With the administration of President Donald Trump promoting tariffs on countries with which trade deficits exist, that problem could conceivably get worse sooner rather than later, but either way, they’re likely to go up whether at a trickle or a torrent.
3. Improper Planning Now
You’ve heard the adage, “The two best times to plant a tree are 20 years ago and today”? The same holds true for estate plans. Don’t spend time beating yourself up for not starting one when you were younger. Just do it now.
4. Increased Taxation
Entitlement programs make up more than half of federal spending. Those dollars have to be found somewhere, and if America is going to persist in funding these programs, it will have to fall on the backs of taxpayers like you. Even though Congress recently passed one of the largest tax cuts ever, it’s not long-term sustainable without a change in spending practices.
All these factors can paint a pretty dim picture of your estate plan’s future, but the good news is that you can start doing something about it now with the right legal representation. Davis, Ermis & Roberts PC has helped numerous clients get their estate plan in order in a way that preserves wealth and promotes growth. If you need help putting yours together, contact us today.
[Featured Image by Creative Commons Images]