Many Baby Boomers are neglecting a key part of their retirement plans — creating an estate plan. And while death is not a pleasant thing to think about, death without an estate plan can create havoc for your surviving family members, financial planners warn.
USA Today recently published an article, titled “Big retirement mistake: Boomers with no estate plan,”that offers several tips for people who might be lagging behind in their retirement savings.
Failure to consider wills and estate planning is a frequent issue for everyone but especially important to the Baby Boomer generation. While you may have thought you could put off planning in your 20s, 30s, and 40s, as you approach retirement and beyond you can no longer fail to plan, 'later' has arrived. The article emphasizes that there are three very important things to think about when you start your estate planning (this week!):
- Your property and financial assets;
- Your children (if they are not adults); and
- Medical decisions.
“Just because you are doing good retirement planning doesn't mean you are doing good estate planning, unless you address all three areas,” the article cautions, and sets out some important things to remember when you create your estate plan:
- Work with an established estate planning attorney to help you protect the safety of your financial plan.
- Get comfortable with the laws in your state, as each state has its own probate laws. Again an estate planning attorney is your best bet here.
- Update all of your beneficiaries. Retirement plan and life insurance beneficiaries don’t pass through your will. These are totally separate and will pass based on your beneficiary designation.
You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning. Why not call us for a complimentary consultation at 757-259-0707.
Reference: USA Today (April 8, 2015) “Big retirement mistake: Boomers with no estate plan”