Considering Changes to Your Estate Plan as You Approach Retirement

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Considering Changes to Your Estate Plan as You Approach Retirement

Changes to Your Estate Plan as You Approach Retirement

Senior Hispanic Couple Relaxing At Home

As you approach retirement, consider revisiting your estate plan to ensure it still meets your needs. If you made the plan years ago, many things in your life may have changed since then. Here are some key reasons to revisit your estate plan today.

Update your plan to reflect current information

Your estate and wishes could be totally different since you last thought about them. Changes that could greatly impact your estate plan include:

  • Lower monthly income due to retirement
  • Market upturn or downturn
  • Illness or health care cost increase
  • Deaths of heirs or beneficiaries
  • Your own or your relatives’ marital status
  • Birth of grandchildren
  • Changes in law, such as the new estate tax exemption
  • Becoming eligible for Social Security and other government programs
  • Cashing out 401(k)s or IRAs

These events and more could affect how you plan for the future. The first step is to figure out if your wishes have changed as a result of any changes. Even if your wishes have not changed, the legal documents you used for your estate plan may need to be updated.

Be realistic about the future

When reviewing your estate plan, determine if you are ready for retirement. Can you afford to retire, considering projected future cost of living and health care expenses? If it is time to retire but your savings are less than you had planned, you can reconsider any gifts or bequests you planned many years ago and speak to a financial planner about maximizing your savings. Your estate planning attorney or tax advisor can suggest ways to take advantage of the new tax laws.

Finally, determine whether your estate plan covers all possibilities for your retirement. Even if you are in excellent health now, you probably want a health care directive and durable power of attorney should your health become poor. Does the estate plan protect your spouse and children should you suddenly pass away? Consider your end-of-life wishes now before you get busy enjoying retired life.

Need an estate plan update? Angela Klenk, Esq. and the team at Beach Cities Estate Law couple personalized attention to your estate plan with big law firm experience for a winning combination to give you peace of mind. To schedule a case evaluation, visit Beach Cities Estate Law online or call (424) 400-2125.

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