For those with wealth, it is not uncommon to reserve a place for a private caretaker or nurse in their estate plan. It shows appreciation for their sacrifices and commitment to remain by your side and provide care when needed.
However, your gift could cause concern among your loved ones if it is unexpected, possibly leading to a formal dispute. Here are some things to consider if you want to honor the one who cared for you so well with a final gift.
Be clear in your will
If your will is the vehicle for your gift, be sure to specify the specific amount or percentage of your estate you are leaving to your caregiver. Clarity helps prevent any potential disputes among heirs or other beneficiaries.
Use a trust instead
Trusts can be an effective way to manage gifting, especially for those with complex, valuable assets. Creating a trust empowers you to specify how and when the funds should be distributed, providing a structured and controlled way to support your caregiver.
Consider a payable-on-death account
A payable-on-death (POD) account is another consideration. It is a simple bank account you can use during your life. When you die, the remaining funds in the account pass to a named beneficiary, preventing legal complications.
Include a letter of intent
A letter of intent can clearly explain your beneficiary decisions by providing context and reasons behind your choices. It can help your loved ones and executors understand your wishes and carry out your final arrangements as intended.
Everyone has different needs and considerations. An estate planning representative can help you find the ideal tool for honoring your care provider with a gift.