The following are some general guidelines for your estate planning based on your age group. As we age, our goals and all that life brings can change. Where are you in your estate planning journey?
In Your 20s and 30s:
- Even if you don’t have much in the way of assets, having a will ensures your wishes are followed about who inherits, etc. Of course, if you have minor children, they are very much the reason for having a will. Make sure to have selected a guardian.
- Name your beneficiaries for retirement accounts and insurance policies. If you don’t have life insurance, consider it, especially for loved ones.
- Ensure you have a Power of Attorney and a Health Care Proxy. You need these in the event you become incapacitated.
In Your 40s:
- Review and update your will if needed. Life changes since the last update, such as marriage, divorce, inheriting a substantial amount, or having children, all warrant a review of your existing will.
- Similarly, review your life insurance policies and reassess whether they meet your current family’s needs. You should also consider long-term care insurance options.
- Ensure your retirement savings plan is on track and aligns with your estate planning goals.
In Your 50s:
- Another review and a possible update of all the documents in your estate plan. Make sure your Power of Attorney and Healthcare proxy are both still relevant. Consider adding an Advanced Health Care Directive to your plan to clarify your end-of-life preferences to loved ones.
- If you haven’t established a trust yet, this is the time to consider it and all the benefits it offers. Talk to an experienced estate plan attorney about how trusts can protect your assets and reduce probate headaches for your loved ones.
- Individuals at this life stage often have become involved with selected charities. Explore charitable trusts and donations as part of your estate plan.
In Your 60s and Beyond:
- Review your beneficiaries and update them on retirement accounts, insurance policies, other financial accounts, and any appointed trustees.
- Develop a gifting strategy to benefit your heirs during your lifetime.
- Finalize retirement plans and become educated about how Medicare, etc., can affect your estate. Consider strategies to protect your assets from long-term care costs.
General Tips for All Ages:
- Keep Documents Accessible: Store your will, power of attorney, health care proxy, and other essential documents in a safe, accessible place. Inform trusted individuals about their location.
- Consult Professionals: Work with estate planning attorneys, financial planners, and tax advisors to ensure your estate plan is comprehensive and legally sound.
Of course, so much of what your unique plan should include (and when) is dictated by your life, your goals, your loved ones, etc. Just like there is no one cookie-cutter plan for everyone, there is no hard and fast rule about when you take steps to create or update your plan. Any estate planning attorney will advise that you should, at minimum, have a will to begin with and go from there. I would be happy to meet with you and discuss your unique situation and goals. Together, we can develop a plan designed to meet your needs and goals and, above all, protect your hard-earned assets and loved ones. Call me to schedule a meeting – I would love to hear from you. Phone: 513-399-7526 Website: www.davidlefton.com.