If you live on the west coast or the east coast, chances are you are in one of the most expensive states to die in when you consider funeral costs, medical expenses, estate tax, and inheritance tax.
In one study through MSN, Oregon is quite expensive listed at number 43 out of 50. California is number 49 and Hawaii tops the list as the most expensive. The reason Oregon is so expensive is because Oregon has an estate tax and a higher than average cost of medical care and funeral expenses.
But another important question is where do you WANT to live that you can afford? Where can you enjoy life and do the things that make you happy? At the same time it is important to be aware of the cash you will need to leave behind to help your loved ones pay the expenses after you have passed.
How can you plan for the expense of dying? Life insurance can help bridge the gap and so can pre-paid funerals. If creditors can take your money, there may not be much left over to pay those expenses. Certain trusts, with the right language in them, can also set aside an amount reserved for the costs of a funeral, taxes, and the like. If you have an estate with a lot of real estate or other illiquid assets, you may not have enough cash to pay for those expenses, causing unnecessary stress and grief after you pass. Talk to an estate planning attorney to help plan for these costs.