Retirement and Estate Planning: Pitfalls to Avoid

One of the most significant impacts of retirement on your estate plan is the change in income and assets. When you retire, your income will likely decrease, and you may need to rely on your retirement savings, pensions, and other investments to support your lifestyle. This change can affect your estate plan in several ways. For example, you may need to update your will or trust to reflect changes in your beneficiaries or the distribution of your assets. You may also need to re-evaluate your tax planning strategies to ensure that you are taking advantage of any available tax benefits.

Another consideration when planning for retirement is your health care needs. As you age, your health care needs may increase, and you may want to consider updating your health care directives and powers of attorney to ensure that your wishes are carried out in the event of incapacity or terminal illness. You may also want to consider long-term care planning, such as setting up a long-term care insurance policy, creating a trust to protect assets, or considering Medicaid planning.

Retirement may also prompt you to think more about your legacy and how you want to be remembered. You may want to consider charitable giving or setting up a trust to support causes that are important to you. This can be an excellent way to leave a lasting impact on the world and to ensure that your assets are used in a way that reflects your values.

Finally, it is important to remember that your estate plan is not a one-time event. It should be reviewed and updated periodically to ensure that it reflects your current wishes and goals. Retirement is a good time to do this review and to work with an experienced estate planning attorney to make any necessary changes.

In summary, retirement can have a significant impact on your estate plan, and it is important to take the time to review and update your plan to ensure that it reflects your current needs and goals. An experienced estate planning attorney can help guide you through this process and ensure that your plan is comprehensive and tailored to your specific needs.

If you are retired or preparing for retirement and have questions about your estate planning, call Gregorek & Associates at 425-284-3450 or fill out our contact form and we will be in touch to schedule a meeting.