Estate Planning 101 for Me

Everyone's situation is different, so my plan may not be good for  you. I do not owe anyone anything, do not spend like no tomorrow and retired early (about 8 years ago). This post is supposed for entertaining. Ask your lawyer for estate planning.

Estate planning 101 for Me.

* If you have less than the Federal exemption after splitting between your spouse, check out how your state's regulations and skip most of this post.

* Most likely and in most states, make your house a joint trust. Or, sell it to your favorite child for $1 and beg him/her to let you stay there before your die. If you do not have one, give it to me for $2 making 100% over $1 - what a smart move!

* Calculate your annual spending with your expected life (85 for female and 80 for male). Make a cushion just in case.

The nursing home or assisted housing is about $7,000 a month depending on your state and considering inflation. If you do not have a house and fall into the poverty level (defined by your state), you're lucky as you can live free in a nursing home in some states such as Mass.

* Give the excess to your children with the limit allowed by the law. Or, give it to me if you have too much. Beg them not to spend it (I definitely will not), just in case you need it.

* Enjoy life and do not worry about money. If you do, add three more years to the life expectancy. If you do not want to win every argument from me in Seeking Alpha, add 10 more years. Re-calculate if needed.

The moral of the story: The government encourages you to spend all your money and die penniless. When you die without toys, you win. When you die before distributing your toys, you lose.

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Check out my book Profitable Investing for Retirees (from amazon).