Approaching Retirement? Four Things You Should Know About Estate Planning
Retirement is something you have worked hard for. Now it is in sight and it should not feel like there are so many things you still have to do before you reach the milestone. Many people reaching retirement, though, struggle with the question of what will happen to the legacy they have built.
Estate planning is not only about what happens to your property after you pass away. It is really about taking control, and giving your loved ones the gift of clarity. Below, our St. Petersburg estate planning attorney explains five important things you need to know.
Your Will is the Foundation, Not the Roof
Many people think that a will constitutes a comprehensive estate plan. Truthfully, while a will is a great place to start planning your estate, these documents can only do so much. They do not plan for incapacity, or help your loved ones avoid probate or unnecessary taxes.
You may also benefit from beneficiary designations on retirement accounts, a revocable living trust, and powers of attorney for healthcare and finances. Each document has a different job and the ones that are right for you will depend on your goals, your assets, and the needs of your family.
Incapacity is Just as Important as Inheritance
One of the most overlooked components of estate planning does not address what will happen after you pass away. Instead, it is about what will happen if you are still alive but no longer able to make decisions for yourself. Without a healthcare directive and durable power of attorney, your family may have to go to court to manage your affairs. This process is expensive, slow, and stressful. Including them in your plan ensures that someone you trust can seamlessly step in if ever needed.
Beneficiary Designations Override Your Will
Many people do not realize that the beneficiary designations you have created on life insurance policies, retirement accounts, and investment accounts will transfer directly to those you have designated. This will occur regardless of what is written in your will. If you have not reviewed those designations in several years, now is the time to do so. If you have old beneficiaries designated, it is time to review them to ensure they do not create problems in your plan.
Your Estate Plan Should Grow With You
The estate plan you drafted ten years ago may not reflect current law or your wishes. Your children may have married during that time, and you may also now have grandchildren. You may have also survived people who are still included in your estate plan. It is typically recommended that you review your plan every three to five years to ensure it is still accurate.
Our Estate Planning Attorney in St. Petersburg Can Help
Retirement is an exciting time and the peace of mind that comes with a comprehensive estate plan can make it even more enjoyable. At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning attorney can review your situation with you, ensure you have the necessary documents in place, and create a plan that is legally enforceable. Call us now at 727-471-5868 or contact us online to schedule a consultation and to get the help you need.
Source:
flsenate.gov/laws/statutes/2000/732.2025
