Congratulations! You’re approaching retirement, a time to relax, travel and pursue your passions. But amidst the excitement, there’s an important step many soon-to-be retirees overlook: estate planning.
Without a plan in place, your wishes for your assets and belongings after you’re gone might not be carried out. This can potentially cause stress and confusion for your loved ones. Even if your estate seems modest, having an estate plan can help ensure your wishes are known.
Taking inventory: The first step
Before diving into legalities, take some time to gather your financial information. This includes creating a list of all your assets: bank accounts, retirement funds, real estate, investments and even valuable personal belongings. Knowing what you own is crucial for determining how you want it distributed.
Next, consider your beneficiaries – the individuals or organizations you wish to inherit your assets. Spouses, children and grandchildren are common choices, but you can also name charities or friends. Think about who you want to receive specific items as well, such as jewelry or family heirlooms.
Crafting your will: The cornerstone of estate planning
A will outlines your wishes for distributing your wealth after your death. While seemingly straightforward, it’s important to have a legally sound will that reflects your specific circumstances.
During the will-drafting process, you’ll designate an executor – the trusted individual responsible for managing your estate and carrying out the instructions outlined in your will. Discuss your wishes with your chosen executor to help ensure they’re comfortable and understand their responsibilities.
Beyond a will: Additional considerations
A will is a crucial part of estate planning, but it might not address everything. Therefore, you should consider incorporating powers of attorney in your estate plan. These documents allow you to designate someone to manage your financial and legal affairs while you are alive but become incapacitated.
The prospect of estate planning can feel overwhelming; starting small is key. Gather your financial information, consider your beneficiaries and involve a reliable legal team such as that at Piro Zinna Cifelli Paris & Genitempo, LLC. Even a basic plan is far better than no plan at all.
