Many people have unexpected expenses near the end of life, particularly when a person is hospitalized or in hospice care for a long period of time. Medical insurance does not always cover all expenses and the bills may come after a patient has passed away. The outstanding medical costs of the decedent must be paid by the estate before any distributions can be made. Other costs that may have to be paid from the estate include:
It is possible for small to medium size estates to be depleted by these costs before anything in the estate can be distributed to beneficiaries.
Trusts and Planning Preserve Assets
A trust can help preserve estate assets to ensure beneficiaries receive the intended distribution. A trust can protect some assets from claims of the decedent’s creditors. Planning for funeral and burial expenses ahead of time can also be helpful to loved ones and a smart way to save more available assets for loved ones.