Missouri Estate Planning Guide: A Comprehensive Overview

Legal Q + A

Mar 6

Written By Graham Settleman

Key Considerations for Missouri Residents When Creating an Estate Plan

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Estate planning is a crucial aspect of financial planning, ensuring that your assets are distributed according to your wishes after your passing. While many fundamental principles apply nationwide, it's essential to be aware of state-specific nuances that can significantly impact your estate plan. If you're based in Missouri, here are some key considerations:

Probate Laws

Missouri follows a probate process to administer the distribution of assets if you die without a will (intestate). The probate court appoints a personal representative to manage the estate, gather assets, pay debts, and distribute property according to the state's intestacy laws. If you have a will, the probate process is still involved, but it can be streamlined.

Trusts

Trusts are a valuable estate planning tool in Missouri. They allow you to transfer ownership of your assets to a trustee who manages them for the benefit of beneficiaries. Missouri recognizes various types of trusts, including revocable living trusts, irrevocable trusts, and testamentary trusts. Each type has distinct characteristics and tax implications.

Powers of Attorney

A power of attorney (POA) authorizes someone you trust to act on your behalf in financial and legal matters if you become incapacitated. Missouri recognizes two primary types of POAs: durable POAs, which remain effective even if you become incapacitated, and nondurable POAs, which terminate if you become incapacitated.

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Community Property Laws

Missouri is not a community property state. This means that property acquired during marriage is generally owned by the individual who acquired it, rather than being jointly owned by both spouses. However, if property is titled in both names, it is considered marital property and may be subject to equitable distribution in the event of divorce or upon the death of one spouse.

Inheritance Taxes

Missouri does not have an estate tax. However, the federal estate tax may apply to your estate if your taxable estate exceeds the applicable exemption amount. It's important to consult with an estate planning attorney to determine if your estate is subject to federal estate tax and to explore strategies for minimizing your tax liability.

Medicaid Eligibility

Medicaid is a government-funded health insurance program that provides coverage for low-income individuals and families. If you qualify for Medicaid in Missouri, it can help cover long-term care costs. However, Medicaid has eligibility requirements that can be complex, and certain assets may be subject to Medicaid estate recovery. It's crucial to understand these rules and plan accordingly to protect your assets.

Conclusion

Estate planning in Missouri involves understanding the state's specific laws and regulations. By working with an experienced estate planning attorney, you can create a comprehensive plan that aligns with your goals and protects your assets for future generations.

Information published to or by The Industry Leader will never constitute legal, financial or business advice of any kind, nor should it ever be misconstrued or relied on as such. For individualized support for yourself or your business, we strongly encourage you to seek appropriate counsel.