Is Retirement Too Late To Begin Your Estate Planning?
Someone who deals with estate planning is going to have a different perspective than most people on when it’s too late or when you should start doing the planning. As a basic starter, when your children turn 18, they should at least have named you as a healthcare surrogate, in case there is a medical accident. You should also be named as a durable power of attorney in case you need to access or monitor your children’s financial accounts that you are not included on to pay bills or make any other financial and insurance-based decisions if something were to happen to your child.
If you choose not to create those documents when you reach age 18, the next logical point at which to create them is either when you get married or when you have your first child. Estate planning at that point is very important in order to name the guardians of your children and the trustees over their money, should you pass away while your young children need to be raised. You want to have their inheritance managed by someone else and not stolen or squandered when they receive the money. After your children become more mature young adults, that’s a good time to update your estate plan to accurately fit the situation.
As you proceed during retirement, you should always look at your plan at least every two years to see if it still is consistent with your wishes. Finally, once you are finished with the money spending phase of your retirement, you need to sit down and create your estate plan if you have not fully done so yet. The worst time to begin is when you are in a hospital bed and are told that you only have a short period of time to live. At that point, creating your estate documents may not happen in time because you may expire before you can sign anything. Also, whatever you do could be highly scrutinized and challenged because you may have declining mental capabilities while ill.
Is Setting Up An Estate Plan When You Are Younger Enough? Is Estate Planning A One Time Thing?
Estate planning is never a one-time thing. It should always fit your circumstances of life and your goals, values, and wishes, as well as your family and financial situation. All those categories need to be merged into a legal document expressing a plan of what happens if you become disabled or incapacitated, or you pass away. Since those categories change over time, estate planning cannot be a one-time thing.
Anyone over 55 should be looking at these documents every three years. Once you hit age 70, you should be looking at them every two years and then at age 85, you should be meeting with your attorney on a regular basis. It is very easy for estate planning documents to become outdated because you created estate planning documents when your children were very young and now, they’re married and age 30. Then, most of the decisions you made have become irrelevant. It is always good to periodically review your planning to make sure it properly fits your situation.
Why Should I Look At Creditors When Doing Estate Planning And Any Updates That May Be Made?
You need to look at your creditors as it relates to your estate planning, your marriage, and your children. If you were to pass away and your spouse does not have sufficient income or assets to cover existing debts like a mortgage or car loan, you’re going to need to look at insurance-based planning. You need to talk with an estate planning attorney on how to legally avoid having these creditors deplete your entire estate before a distribution can be made to your children. Any time there are creditors and assets available for collection by those creditors, you should be highly attuned to how your estate plan is set up to avoid your children losing their inheritance and having to pay the creditors instead.
For more information on Estate Planning & Retirement In Florida, an initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (904) 398-6100 today.
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