You might already have grand plans in store for your retirement years, but you also know that there are many preparations to make before officially retiring. It is important to make sure your financial affairs are in order, and equally important to sort out your estate planning.
If you have a will in place, then you are already one step ahead of many older adults when it comes to estate planning. In addition to a simple will, though, there are some other crucial items to consider implementing in your estate plan before embarking on whatever journeys you have lined up for your retirement.
1. Living trusts
Trusts work well in tandem with a will to give you greater control over how your assets will pass on to your beneficiaries. A living trust also gives you the option to distribute assets within the trust during your lifetime and may bypass the probate process after your passing as well.
2. Advance medical directives
An advance medical directive or advance care plan outlines the type of treatment you will receive if you become incapacitated. Putting these directions into writing as part of your formal estate plan ensures you alone have control over important medical decisions regarding your own health.
3. Power of attorney
Granting power of attorney to a trusted individual gives that person the authority to make important decisions regarding your finances and estate. This is a vital preparation to make in case of circumstances in which you become incapacitated or otherwise lack the capacity to make these decisions yourself.
Many people regard estate planning as a sort of end-of-life process to put off until the very end. Completing your estate plan before retirement ensures that you have all preparations in place before it is too late.