Estate planning can help you decide what happens to your property, finances, and other
important parts of your life. It can also give your family clear instructions if you are no
longer able to make certain decisions yourself.
Estate planning is not only for wealthy families or people who are already retired. Many
adults can benefit from understanding how an estate plan works and when it may need
to be updated.
Why Is Estate Planning Important?
An estate plan can help explain your wishes and give your family direction.
Without the right documents in place, some decisions about your property and finances
may be handled according to state law. Planning ahead can make your wishes clearer
and help your family understand what steps to take.
Estate planning may become especially important after major life changes, such as:
- Having grandchildren
- Buying a home
- Getting divorced
- Retiring
- Experiencing a major change in your finances
These can also be good times to review an existing estate plan.
What Can Be Included in an Estate Plan?
Every person’s needs are different. Depending on your situation, an estate plan may
include a will, financial power of attorney, healthcare power of attorney, advance
healthcare directive, or trust.
Beneficiary designations can also play an important role. These may determine who
receives money from certain retirement accounts, insurance policies, and other financial
accounts.
Because these documents can have legal and financial effects, it is important to work
with qualified professionals when creating or changing them.
How Does Estate Planning Connect With Retirement?
Estate planning and retirement planning often work together.
Your retirement plan may cover your income, investments, taxes, healthcare costs, and
long-term financial goals. Estate planning looks at another part of the picture: what
should happen to your assets and how your wishes should be handled.
Changes in one area may affect another. That is why it can be helpful to review your
financial and estate plans together.
When Should You Review Your Estate Plan?
Creating an estate plan is not always a one-time task.
Your family, finances, property, and goals can change over time. Even if you already
have an estate plan, it can be useful to review it after a major life event or periodically
with the appropriate professionals.
At RetireWise, estate planning is considered as part of the larger retirement picture. Our
team includes an estate planning specialist who can help you see how your estate plan
fits into the bigger picture of your retirement plan. We’ll help the different pieces work
together and, when needed, work alongside an estate planning attorney to keep
everything on the same page.