Wills, Trusts and Estate Planning For Retirees
At certain points in life, estate planning becomes critical. One such instance is when you have young children, as you need to nominate a Guardian in your estate plan to care for them if you were to pass away. Another crucial moment is as you near retirement age, after working hard to raise your family, build your career, and save for retirement. You’ve invested a significant amount of time, effort, and money in your life’s work, and it’s crucial to have an estate plan that maximizes your efforts and safeguards your assets.
As You Age, Your Priorities Change – Your Estate Plan Should, Too
Estate planning involves utilizing a variety of legal tools such as Wills, Trusts, Powers of Attorney, and others to ensure that your assets, family, and your own well-being are protected according to your wishes. As you progress through different stages of your life, your estate planning needs also evolve. The estate plan you created when you were in your 30s may not adequately serve you in your 50s or 60s, as your priorities and goals change. Your previous estate plan was likely designed to address emergency situations, but as you accumulate wealth and assets over time, your focus should shift towards preserving and maximizing your life’s work.
Advantages of a Trust Based Estate Plan
Typically, an initial estate plan consists of a Will-based estate plan that doesn’t include a Trust. However, compared to a Will-based estate plan, a Trust-based estate plan may cost more to set up initially but could end up saving your estate and loved ones significantly more money in the long run. Investing in a Trust allows your estate to avoid probate court and all its associated fees. The fees for a typical probate estate can exceed $8,000 based on the first $100,000 of the estate’s net worth, and these fees only increase based on the estate’s total value.
The cost of setting up a Trust is much less than these fees. Investing a few thousand dollars in something that will earn you tens of thousands of dollars is a no-brainer, and a Trust is just such an investment. In addition to cost savings, a Trust enables you to create more detailed plans for your family and assets, providing greater control and flexibility than a Will-based estate plan. If you don’t have a Trust already, contact us now to get started.
Considerations for Your Final Trust Based Estate Plan
Your estate plan should be seen as a dynamic set of documents and planning tools that grow and evolve over time, just as you and your family do. When planning your Trust-based estate plan, your focus should be on preserving your assets to ensure they don’t get depleted too soon, as well as making provisions for your loved ones to take over important financial or medical decisions should you need assistance. It’s also important to consider who will be there for your surviving spouse in the event of your passing. You may want to structure the distribution of your assets in a way that protects and preserves them for a longer period of time, rather than a one-time lump-sum payment to your beneficiaries.
Ultimately, your goal should be to leave a lasting legacy for your loved ones. This is your opportunity to ensure that everything you’ve worked hard for during your life lives on after you’re gone. You should ensure that your family doesn’t have to go through the costly and frustrating probate process, that your wealth is there for them over the long term, and that they can assist you and your surviving spouse without any hassles. These are just a few of the many reasons why it’s essential to review and revise your estate plan as you enter the later stages of your life.
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The Attorneys at Krueger and Valente Law, LLC
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