Estate Planning For Doctors

Estate planning is essential for everyone for many reasons, including financial, legal, and personal purposes. A sound estate plan takes careful consideration and is an ongoing process. Estate planning can be particularly tricky to navigate for doctors because their profession often leaves them vulnerable to lawsuits and litigation. The medical field can be unpredictable, with countless factors that could impact a physician’s assets and financial standing. Therefore, even though it is time-consuming, boring, and sometimes unpleasant to consider, estate planning is crucial for doctors who wish to protect themselves and their family’s future. Schedule a meeting with a knowledgeable estate planning attorney at Fleurinord Law, PLLC. Reach out to us in Texas at (713) 346-2011 or in Florida by calling (305) 900-3139 and request your consultation to learn more about estate planning for doctors.

Physician Estate Planning Guide

Putting off estate planning is something that many doctors do as long as possible. Making plans for the end of life and death is not something most people want to think about. Furthermore, the process can be complex and sometimes stressful, and doctors live busy lives. However, if something happens and they do not have a plan in place, those they love the most could have a mess to clean up while they are already grieving the loss of a loved one. One of the best things doctors with families can do is protect them by creating a sound estate plan. Some of the vital estate plan considerations for doctors include:

• Tax planning and using practical tools to minimize estate and inheritance taxes
• The protection of assets
• Ensuring the distribution of assets after death

Not only must physicians protect their personal estate assets, but many of them must also consider and plan for their healthcare practice.

Estate Planning Mistakes for Physicians To Avoid

The most significant estate planning mistake doctors make is failing to have an estate plan. This lapse is common across many professions, not just physicians. However, working in the medical field can raise additional issues that individuals working in other areas do not have. Other typical doctor estate planning mistakes include the following:

• Owning a practice and failing to plan for the succession of the business should something happen to lead to incapacitation or death
• Not creating an asset protection trust to protect assets
• Forgetting to name a medical and financial power of attorney
• Lack of tax planning and preparation
• Creating a generic estate plan rather than a comprehensive plan tailored to their specific needs and profession

The combination of the inability to predict the future and the long and complicated process of estate planning causes many busy doctors to think they will have time later. However, the risk of something happening without one far outweighs the temporary inconvenience of reviewing one’s assets and options and preparing estate planning documents to cover a wide range of contingencies.

What Doctors Need To Know About Estate Planning

Most doctors work hard to help patients by providing the highest quality of care. Even so, they are vulnerable to medical malpractice lawsuits that could lead to an unexpected and significant impact on their finances and lifetime savings. The results of these lawsuits can be devastating. A sound estate plan and asset protection planning are crucial to doctors’ ability to protect themselves and their family and prepare for the future. Another essential point that doctors must keep in mind is that age does not matter. Younger doctors are less likely to consider creating an estate plan. However, it is never too soon to prepare. As they get older and there are life-changing events, they can update and change the estate plan and documents as needed.

Asset Protection for Physicians

Estate planning to protect property is a crucial element of wealth management, and physicians must address it as early in their careers if possible. They should also review the plan periodically to make updates as needed. An attorney at Fleurinord Law, PLLC, could answer questions about estate planning for doctors. The high cost of medical malpractice insurance continues to increase, causing many doctors to minimize coverage and seek alternate ways to protect their assets. One crucial aspect affecting asset planning is advanced preparation. Attempting to take steps and create safeguards after an issue occurs can often only cause more problems. One effective tool for protecting assets is through an irrevocable trust.

Succession Planning for Patient Care

Something for physicians with solo practices to consider is the appointment of another doctor to step in and manage the practice should something happen, either by permanently adopting the practice or by temporarily seeing patients while the estate beneficiaries prepare to sell the business. Including this kind of business succession planning in a comprehensive estate plan can help physicians to ensure the continuance of patient care in the event that they themselves suffer unexpected illness, injury, or death.

The Essential Estate Planning Documents for Doctors

A thorough estate plan will include incapacitation, estate distribution, and transfer tax planning. Some of the essential estate planning tools and documents that doctors should consider include the following.

●     A Last Will and Testament or Living Trust

●     an irrevocable trust for asset protection

●     A general durable power of attorney

●     A healthcare power of attorney

●     A Living Will

●     Health Insurance Portability and Accountability Act document, or HIPAA Release form

Texas Spendthrift Trusts as Asset Protection Tools

One effective asset protection tool for doctors in Texas is a spendthrift trust. Texas law recognizes spendthrift trusts at the Texas Property Code § 112.035, and the estate planning tools are practical asset safeguards. Proper structuring of the estate planning tool can protect assets from lawsuits and creditors, keeping them safe for the estate beneficiaries.

Florida Asset Protection Trust

An irrevocable trust is an effective estate planning tool for doctors to protect their assets in Florida. The asset protection laws and regulations of the Florida Trust Code protect assets consigned to the trust when physicians encounter legal trouble, such as lawsuits and other litigation. After an individual transfers the assets into the trust, the irrevocable trust owns the property. As a result, assets contained in the trust cannot be claimed as payment for debts or other liabilities, meaning that the trust’s assets are preserved for beneficiaries. Florida also has other asset protection tools that offer additional ways for physicians practicing in the state to preserve their assets.

Meet With a Seasoned Estate Planning Attorney

Doctors may confront many financial obstacles throughout their life, some of which may persist after their own death. From the potential for medical malpractice lawsuits to higher tax rates, individuals in some sectors of the medical profession are at enhanced risk of encountering some types of financial difficulties. This reality makes preparation and safeguarding your assets crucial. Now is always the best time to preparing for the future by developing a comprehensive estate plan tailored to your unique needs. Set up an appointment with an experienced attorney at Fleurinord Law, PLLC by calling (305) 900-3139 in Florida or (713) 346-2011 for questions about estate planning for doctors.