Retirement Is The Right Time To Revisit Your Estate Plan

Retirement marks the beginning of a new chapter. It may mean traveling, spending more time with grandchildren, downsizing, or simply enjoying a slower pace of life.

Whatever retirement looks like for you, it usually brings changes — and those changes can affect your estate plan.

Many people sign a will or trust and then place it in a drawer, assuming their planning is complete. But an estate plan should change along with your life. Retirement is a natural time to make sure your documents, assets and wishes are still working together.

Review the People You Have Chosen

Your estate plan likely names a personal representative, successor trustee, financial power of attorney and healthcare agent. Are they still the right choices?

Someone you selected years ago may have moved away, developed health concerns, or may no longer be part of your life. Your adult children may now be ready to serve. The people you name should be trustworthy, capable and willing to act — and you should also name backups.

Prepare for a Possible Incapacity

Estate planning is not only about what happens after death. It also determines who can help if you become ill or unable to manage your own affairs.

Your advance healthcare directive should identify who may make medical decisions for you and explain your wishes regarding treatment and end-of-life care. Your financial power of attorney should authorize someone you trust to manage finances and other important matters. Reviewing these documents while you are healthy allows you to make thoughtful decisions and discuss your wishes with the people who may carry them out.

Review Your Assets and Beneficiaries

Retirement often changes your financial picture. You may roll a workplace retirement account into an IRA, buy a new home, open investment accounts, or obtain a new insurance policy.

Retirement accounts, life insurance and certain financial accounts pass according to beneficiary designations — not your will or trust. Confirm that your designations are current and coordinated with the rest of your plan.

If you have a revocable living trust, make sure the appropriate assets are titled in its name. A trust cannot control an asset that was never connected to it.

Consider Your Family, Legacy and Future Care

Families change. There may have been marriages, divorces, births, deaths or changes in a loved one’s circumstances. You may now want to protect an inheritance for a child, provide for someone with special needs, include new grandchildren or leave a charitable gift.

Retirement is also an appropriate time to consider future long-term care. Depending on your circumstances, planning may include long-term care insurance, an asset-protection trust or other strategies. Because some options must be implemented years before care is needed, it is better to explore them before a crisis.

Planning for the Life You Have Today

If your estate plan has not been reviewed in the past three to five years — or if your family, health, finances or living arrangements have changed — now is the time to revisit it. Even when major revisions are unnecessary, confirming that everything remains current can provide valuable peace of mind.

Your estate plan should reflect the life you have today and protect the people you love in the years ahead.

For more information, or to schedule an appointment, contact Rachel Muñoz at 410-541-0269, or visit www.trustmunoz.com.