Is retirement a good time to create an estate plan?

Your retirement is a time for which you’ve planned and prepared for much of your adult life. As you look toward your golden years, you may be most concerned with the money you’ve saved and the plans you have made. Do you have enough set aside, or will you need to cut corners and change your plans? Will you need to find a job at some point in your retirement? These are pressing matters, but there are other matters you will want to take into consideration as well.

In addition to the financial preparation for retirement, you will also want to take your estate plan into consideration as well. If you do not have legal and financial planning documents in place, there is no time to lose in making these plans. If you have an existing estate plan, you may need to make adjustments and updates in order to align your strategy with your retirement objectives.

Planning and looking ahead

Entering retirement is an important milestone. At this time in your life, it is an appropriate stage during which you can look ahead and make critical preparations for the next stage in your life. Some additions to your estate plan or basic estate planning steps you may need to consider include:

• A will — If you do not have a basic will, this is a critical first step you will need to take. This allows you the ability to decide what happens to your property after you pass and more.
• Updated beneficiary designations — You will benefit from carefully reviewing your current beneficiaries on your retirement plans and other accounts. Over time, changes may be necessary.
• Tax-reduction considerations — There are steps you can take that will allow you to potentially reduce your taxes and lower the potential estate tax burden for your heirs and beneficiaries.
• A trust — This may be a beneficial estate planning tool you can add to your existing plans. Trusts allow you to set aside and protect assets for a specific use in the future.

If you are planning to retire soon, now is a good time to review your plan or determine what new estate planning steps are critical for your unique estate and specific objectives. With the right protections in place, you will be able to look to your future with confidence, knowing your legal and financial interests are secure.