Estate Planning for Physicians
Estate Planning for Physicians
Marietta Estate Planning Attorney
Physicians who are planning their estate are often faced with unique circumstances. Doctors may be faced with estate tax issues and are almost always concerned with asset protection techniques. That's why estate planning cannot be cookie-cutter. Each physician's family and circumstance is one-of-a-kind. Estate planning for physicians offers several tools to address these concerns. But, there are some basics every physician should have.
Basics for every Physician
Every physician should have these estate planning documents in place for their family:
Advance Directive for Health Care
Something every doctor should have in their estate planning portfolio is the Advance Directive for Health Care. Doctors and physicians should be very familiar with this document as it used in the healthcare sector to allow trusted people, perhaps a spouse or adult child, to make decisions for someone in the event they are unable to make decisions for themselves.
Financial Power of Attorney
Just like the Advance Directive, every physician should have a financial power of attorney. This document allows a trusted person to make financial decisions in case the person becomes disabled or incapacitated.
Last Will and Testament
One of the more important documents a doctor can have when it comes to estate planning is the Last Will and Testament, especially if there are minor children involved. In Georgia, the only way to name a Guardian for a minor child is through a Last Will and Testament so it is very important to establish one if you have minor children.
Estate Planning tips for Physicians
Because the practice of medicine is a profession with a lot of liability risk, physicians have special concerns when it comes to estate planning. Here are three tips for physician estate planning:
Trusts to Consider
QPRT stands for Qualified Personal Residence Trust.
With the QPRT, you can eliminate your residence from your estate value and reduce its value as a gift. Transferring your home to the trust over a term of years means you can remain in the home with retained interest until the end of the trust. At that time, the ownership transfers to your beneficiaries as a remainder interest (of course, you could arrange to still live there at that point).
An additional benefit to the QPRT is for asset protection purposes. Because you no longer own your home (your QPRT does), your creditors cannot attach the home.
The DAPT stands for Domestic Asset Protection Trust.
Unfortunately, Georgia law does not allow for the creation of a DAPT. Essentially, this is because Georgia is a very creditor-friendly state. But, I happen to be licensed in Tennessee which does allow for a DAPT. The DAPT works well for assets such as cash, but it doesn't work to protect assets like Georgia real estate. You may be able to place the Georgia real estate into a Tennessee LLC and then place it into the DAPT, but cash works best for asset protection purposes. Think of it as a rainy-day fund.
Best of Cobb
The Farrell Law Firm, PC earned accolades from Cobb Life Magazine as a top-tier law firm, with Attorney John P. Farrell being celebrated as one of the top three lawyers in Cobb County, Georgia, for the past two consecutive years.
Unique Estate Planning
Estate planning for physicians is unique in that doctors face circumstances that most people do not. Especially as it relates to asset protection and estate tax issues. That’s why it’s important to work with a Marietta estate planning attorney like The Farrell Law Firm.
Our legal team at The Farrell Law Firm is able to help clients throughout the Marietta area and beyond since we are licensed to practice in Georgia, Tennessee, and Texas. We can help you if you have further questions about establishing your estate plan. Clients can receive thoughtful insight into physician estate planning and the other aspects that come with estate planning, such as wills, probate, and trusts.
