When prices are going up, the economy feels shaky, and everyone’s talking about a possible recession, it’s totally understandable if your focus is just on getting through the day-to-day. But even in uncertain times, taking care of your estate plan is one of the smartest moves you can make to protect what you’ve worked so hard to build.

At Hudson Legacy Law, we get it. Inflation is hitting everyone, and it’s natural to feel nervous about your 401(k) and other savings. That’s exactly why having a strong estate plan—and a solid retirement strategy—can give you peace of mind and help you stay prepared for whatever the future brings.

Estate Planning Isn’t Just for the Wealthy

In a down economy, estate planning might sound like something only the wealthy need to worry about. But in reality, it’s for anyone who wants to safeguard their assets. Even basic estate planning tools can protect you from things like lawsuits, unexpected medical issues, or sudden job loss.

For example, if you transfer certain assets into a business or specialized trust, you could shield them from future creditors. You can’t move assets around to avoid current debts, but you can take steps now to protect yourself from what might happen down the road.

Time for a Plan Review

With inflation and market ups and downs, it’s a smart time to take a second look at your estate plan. We’ll review everything—your real estate, savings, investments, and more—to see how your current plan holds up in today’s economy.

We’ll also team up with your financial advisor to figure out if you should make any changes based on how your investments are performing. It’s all about fine-tuning your plan to stay on track, no matter what’s happening in the market.

Don’t Overlook Taxes

Inflation can sneak up on you in ways you might not expect—including how much your family could owe in taxes someday. Let’s say the value of your home or other real estate goes up significantly. That could mean a bigger tax bill for your heirs down the road.

Setting up an irrevocable trust or a charitable trust can help reduce your taxable estate and minimize the burden on your loved ones. With the right planning, you can keep more of your wealth in your family’s hands—not the government’s.

Mix It Up: Diversify Your Estate Plan

The saying “don’t put all your eggs in one basket” definitely applies here. A well-rounded estate plan gives you more flexibility and security.

That could mean spreading your assets across real estate, stocks, bonds, and even real estate investment trusts (REITs), which offer more liquidity than buying property outright. Stocks may dip in a recession, but they tend to bounce back strong. Bonds, especially inflation-adjusted ones like I Bonds, offer more stability. A mix of these investments helps balance risk and reward.

Keep Some Cash Handy

Having quick access to cash—also known as liquidity—is super important when the economy gets rocky. Including liquid assets in your plan (like savings accounts or easily sold bonds) gives you a safety net. This way, you can cover short-term needs without dipping into your long-term investments.

Life Insurance Can Be a Game-Changer

Life insurance is more than just a way to leave money to your loved ones—it can also give your family access to cash when they need it most. Some policies even let you access funds while you’re still alive.

Plus, life insurance can be used in smart ways, like backing a business loan or funding a buy-sell agreement. You can also place your policy into a trust and set clear instructions for how the money should be used to support your family after you’re gone.

We’re Here to Help

At Hudson Legacy Law, we’ve helped people throughout the Hudson Valley, New York City and Northern New Jersey navigate tough economic times with smart, personalized estate plans. Whether you’re just starting out or looking to update an existing plan, we’re ready to help you protect what matters most.

Get in touch with us today to schedule a consultation. Let’s recession-proof your estate plan—together.