You’re approaching retirement, so you want to be sure that you’re prepared for anything that could happen in the future. Now is a great time to look at your estate plan and to start going over your affairs.
While you may not be planning on being incapacitated or passing away any time soon, retirement is a great time to sit down and plan out how you want to preserve your assets, protect your loved ones and protect yourself. Here are five things to consider about estate planning in retirement.
- You can designate beneficiaries on retirement accounts
If you want to protect your retirement accounts if you suddenly pass away, one of the things to do is to include beneficiary designations. You may also need to complete transfer on death designations. This makes sure that your assets pass directly to your beneficiaries.
- You need to start telling people where to find your estate planning information
Now that you’re getting older, it is time to sit down and talk to your loved ones about your estate plan and where to find it. At the very least, let your estate administrator know the location of your lists of beneficiaries or documents, so that no assets get lost or wishes go unspoken.
- You need more than a basic will
If you only have a basic will, now may be a good time to look into expanding on it. You could opt to set up trusts to pass on assets to children or grandchildren, for example, or use a living will to discuss your wishes if you fall ill. Now is also a good time to establish your powers of attorney, too, so you know who will take care of you or your finances in the future.
- An inventory helps everyone after your death
While it might seem extreme to list out everything you own that is of value, doing so can save time and energy later on. Consider establishing an inventory to help your executor find all of your assets after your death.
- It’s time to simplify your finances
Finally, consider simplifying your finances to make estate planning easier. Focus on long-term care planning, protecting your financial investments and keeping those assets safe. Pass on assets when you can to help reduce your estate’s value.
These are a few ideas to consider as you start estate planning in retirement. Taking these steps now may make handling your estate easier for everyone in the future.