Many people make the decision to start estate planning early on in life. It can be a prudent decision, especially for young adults starting a family who want to ensure their children will receive proper support in a worst-case scenario.
If you do already have an estate plan in place, it is important to keep it updated as your circumstances and financial situation change. In particular, there are a few key items to consider adding to your estate plan before you enter retirement.
1. Advanced medical directives
Putting advanced medical directives into writing through a living will ensures that you have control over the type of care you receive if you become incapacitated. This can also free your family from the burden of making difficult or costly decisions on your behalf.
2. Power of attorney
Assigning power of attorney to a trusted individual is another way to prepare for the possibility that you might become incapacitated or otherwise become unfit to make important decisions. This chosen individual has the authority to decide on financial matters and other issues regarding your estate.
3. Trusts
Creating a trust as well as a will gives you greater control of how your assets pass on to your beneficiaries. Trusts can also bypass the probate process in some cases, making matters easier on your family.
As you grow older and enter your retirement years, your priorities are likely to shift. Taking steps to ensure that your estate plan accounts for the most pressing eventualities is the best way to give yourself and your family peace of mind.