You’ve worked hard your whole life and are enjoying your retirement. Your financial planner and Tucson estate planning attorney have worked together to ensure you have living expenses covered by pensions and retirement investments, and when the time comes, you’re able to afford the cost of dying to pay medical and funeral expenses.
Cost of Dying and Cost of Living
Not surprising, the cost of dying in each state is in direct correlation to the cost of living. For example, Mississippi is the least expensive state in which to die at an average funeral cost of $5,166 versus the national median of $6,078. It should come as no surprise that Mississippi also has the lowest cost of living. [Source]
In Arizona, the cost of living is just about 2% less than the national average, while healthcare is about 1% more and housing is 2.8% under the average. [Source] The average out-of-pocket, end-of-life medical expenses are $11,618, while the average funeral expenses are $6,078. [Source] Without proper planning, these expenses can leave your family in debt, which makes it important to have an estate plan in place.
This is in contrast to the most expensive place to live and die – Hawaii. While it’s a beautiful state to visit, the cost of dying is the highest in the nation, nearly double our home state. Funeral costs are an average of $11,408 and the end-of-life care average is $21,807.
Whether you’re in Arizona, Hawaii, or another state, it’s important to plan ahead so your family isn’t left paying the debt with proceeds from the sale of your assets.
Impact on Financial and Estate Planning
There is currently a federal estate tax that applies to a relatively small amount of the population—those whose estate is valued over $5.49 million. When it comes to Arizona estate planning, there is no state estate tax or inheritance tax, which can potentially save your heirs thousands of dollars. We encourage you to speak to Kinghorn Heritage Law Group to understand how your assets can be protected and end‑of‑life expenses can be covered. In our meeting we will discuss:
- Your current estate plan. Often we meet with people who think they need to have millions of dollars in assets to establish a Trust, so they only have a Will. While a Will is better than no plan at all, a Trust will provide tools for estate preservation and asset protection as well as provisions for disabilities, an important need that often gets overlooked. In addition to a Trust, powers of attorney and living wills are essential parts of an estate plan.
- Your family. We want to create a plan that protects what is most important to you.
- Your wishes. It saves families stress when they understand their loved one’s wishes. If you want your grandson to have your antique golf clubs, then let’s make that part of your plan.
Whether it’s passing down family heirlooms or making sure you can afford the cost of dying, the Kinghorn Heritage team is here to help. Contact us today to schedule a complimentary consultation.