As you enter retirement, it’s crucial to get your estate plan in order if you have not already done so. If you created the plan years ago, consider reviewing and updating your plan. If you’ve never made created an estate plan, now is the time to do so.
What retirement means for your estate plan
Retirement alters the landscape of your income and assets considerably, so it’s important to have your financials in alignment before you take this major life step.
Beyond that, retirement is a natural part of the aging process. Although you may not like to think about it, other parts of the aging process include health deterioration and mortality. An estate plan provides for the legal, financial and medical considerations aging brings about.
What does an estate plan include?
An estate plan may include a variety of elements, but here a few basics:
· Will, outlining the division of your assets and listing your beneficiaries
· Living or revocable trust, which functions similarly to a will while you are alive and also provides for you in the event of incapacitation
· Personal property memorandum, which may include a division of personal physical property (more gift-like items)
· Durable power of attorney, which appoints a trusted individual to act as your representative in financial and legal matters
· Healthcare power of attorney, which appoints a trusted individual to act as your representative and decision-maker in healthcare matters
· Living will, which expresses end-of-life care wishes
What solutions does an estate plan provide for retirees?
An estate plan provides assurance and a solid plan. It provides a sense of peace for both you and your family in the knowledge that decisions have already been made. In the event of an illness or accident, you don’t want yourself or your family to have to grapple with financial or legal matters. And, in the aftermath of your passing, you don’t want your family to have questions or disputes about your wishes.
Estate planning is part of aging responsibly. Retire with care, and enjoy your golden years secure in the knowledge that you have taken the appropriate precautions.