Did you know there is a connection between your retirement plan and your estate plan? As you’re starting to prepare for your retirement years, it’s a great time to learn how these two measures can work together to benefit you and future generations.
Your retirement should be spent with enjoyment, not worrying about how to pay your bills or who would care for you if you become incapacitated. An estate planning attorney can help you create a plan to meet your future goals.
The Connection with Estate Plans & Retirement Plans
Retirement planning is when you plan for your anticipated income after leaving the workforce and the steps you need to take to achieve that goal. Estate planning is when you prepare Wills and Trusts, select beneficiaries, and determine who will manage your assets after your passing.
Both plans focus on how you want to live and where you want your life’s possessions to go after you’re gone. Now that you understand the connection between the two plans, the next step is preparing your estate for your retirement.
Setting up an Estate Plan for Your Retirement Years
Whether you already have an estate plan in place or need to create one, there are specific questions and items to consider as you reach your retirement age. Your estate plan focuses on how you want to live if you are physically or mentally incapacitated. It also includes instructions on how you want your property and estate handled once you pass.
Estate Planning Questions to Consider
- Have you added beneficiaries to both plans?
- Have you identified a Power of Attorney (POA) to make decisions on your behalf?
- Should you purchase long-term care insurance?
- Do you want to maximize your retirement contributions now before you retire?
- Have you determined at what age to take out your Social Security benefits and calculated the estimated amount you will receive?
- Do you need to make potential disability plans?
- Have you set up a Trust?
- Do you need different types of Trusts to fit your situation?
If You Already Have an Estate Plan in Place
Before you enter retirement, you will need to review your current estate plan for the following.
- Thoroughly review your current retirement plan
- Developing a Will with a Living Trust
- Include an advance directive with your Living Will
- Appoint a POA to manage your assets
- Appoint a Medical POA
- Include a HIPPA release for your POA
- Determine any Special Needs Trusts for adult children or aging parents, if necessary
Preparing for Unexpected Health Challenges
While you want to be positive that you’ll have a healthy life into retirement; it’s best to be prepared for unexpected situations. You’ll want to work with an estate planning lawyer to determine what kind of preparations to put into place in the event of health concerns.
Selecting a Power of Attorney
This is a person who will make your decisions in the event you’re injured or sick. You’ll need to designate a Medical Power of Attorney to make all medical decisions regarding treatments and care. Next, you’ll need to determine the second Power of Attorney who will be granted control of your assets, estate, and money while you’re incapacitated.
Developing a Living Will
A Living Will allows you to put measures in place regarding your end-of-life care and what type of actions you want taken.
Medicaid Asset Protection Trust
It doesn’t take long for ongoing health care to become costly (at-home care or a nursing facility). A Medicaid Asset Protection Trust allows you to protect your hard-earned money from quickly being depleted due to those costs.
Is it Time to Start Your Estate & Retirement Plans?
Auld Brother Law Group is an experienced estate planning law firm that is familiar with helping individuals plan for their retirement years. We understand that sometimes this process can feel overwhelming, but you’re not alone. We’re here to listen and answer your questions while we guide you through the estate planning process.
Contact us today for a free consultation and legal advice.