Estate Planning Tips For The Newly Retired

Retirement marks a significant transition in one’s life, involving not just changes to daily routines and financial status but also necessitating a reassessment of legal and estate planning tips. At Bosshard Parke, we understand the unique needs of newly retired individuals in La Crosse, Wisconsin, and we are here to help you navigate the complexities of estate planning. Here are some essential estate planning tips to ensure your peace of mind during retirement.

Update Your Will

One of the first steps in estate planning should be to review and possibly update your will. Life events leading up to retirement, such as the death of a spouse, marriage, or the birth of grandchildren, might affect your initial intentions.

• Personal Representative Choices: Consider whether the personal representative named in your will is still a suitable choice given their current circumstances and your relationship.
• Asset Distribution: Changes in your asset portfolio over the years, including the sale or acquisition of property or investments, might require updates to your asset distribution plans.
• Guardianship: If your will includes plans for guardianship (in cases involving dependents), review and adjust these in light of current relationships and the guardians’ capabilities.

Consider A Living Trust

A living trust can be a powerful tool in estate planning, providing more control over your assets both during your lifetime and after your passing. It allows you to:

• Avoid Probate: Assets held in a trust can bypass the probate process, enabling a smoother and faster transfer of assets to beneficiaries.
• Maintain Privacy: Unlike wills, which become public record once they enter probate, trusts can maintain the privacy of your estate details.
• Plan for Incapacity: A living trust can include provisions if you become incapacitated, designating someone to manage your affairs without the need for court intervention.

Healthcare Decisions

Retirement is a critical time to plan for future healthcare decisions. This involves preparing documents that express your wishes regarding medical treatment if you become unable to make decisions yourself.

• Advance Healthcare Directive: Also known as a living will, this document outlines your preferences for medical care, particularly about life-prolonging procedures.
• Durable Power of Attorney for Healthcare: This designates a person to make healthcare decisions on your behalf if you are incapacitated. Choose someone you trust, who understands your wishes, and is willing to advocate on your behalf.

Financial Power Of Attorney

Establishing a durable power of attorney (POA) for finances is crucial. This person will manage your financial affairs if you’re unable to do so, from paying bills to managing investments.

• Select Carefully: Choose a reliable person who has a good grasp of financial matters. It’s often advisable to choose someone who works well with your family to avoid conflicts.
• Define Scope: Clearly outline the powers granted to your POA. You can specify which decisions they can make and under what circumstances these powers come into effect.

Beneficiary Designations

Retirement accounts and life insurance policies are controlled by beneficiary designations, which can override instructions in wills and trusts. Ensure these designations are up-to-date to reflect your current wishes.

• Review Regularly: Check these designations as part of your regular estate review, especially after major life events.
• Consistency: Ensure your designations align with other estate plans to prevent conflicts and confusion among your heirs.

Funeral And Memorial Arrangements

Though often overlooked, planning your funeral and memorial arrangements can be part of your estate plan, relieving your loved ones of the burden of making these decisions during a difficult time.

• Specify Wishes: You can outline your preferences for burial or cremation, the type of ceremony you desire, and even details like music and readings.
• Consider Prepayment: Prepaying for your funeral can lock in costs at current prices and further ease the logistical and financial load on your family.

Conclusion

Effective estate planning is a dynamic process, especially crucial when you transition into retirement. At Bosshard Parke, we will ensure that your estate plan reflects your current wishes and provides for your loved ones in the best possible way. By following these estate planning tips, you can secure your legacy and peace of mind for years to come. Request a consultation today.

Disclaimer: This article is for informational purposes only and should not be considered legal advice. For personalized guidance on estate planning tailored to your retirement needs, please consult with a qualified attorney at Bosshard Parke.