While many people put off the task of building an estate plan until later in life, it is also something you can do gradually over the course of many years. Either way, it is important to understand that the functions you require of your estate plan may change as you grow older.
There are specific purposes your estate plan can fulfill as you approach retirement. By familiarizing yourself with a few crucial items to include in your estate plan before you retire, you can enjoy peace of mind as you enjoy your golden years without worry.
Revocable trusts
A revocable trust is an estate planning tool that allows you to pass your assets to a beneficiary according to your specific instructions, all while avoiding probate and maintaining your right to remove items from the trust during your lifetime. Revocable trusts work well for parents with minor children or entrepreneurs with a business to consider.
Medical directives
An advance medical directive is a document you can include with your will to outline the treatment you should receive if you become unable to voice your own wishes. If an illness or other condition incapacitated you, family members and physicians can look to your medical directive for instructions.
Power of attorney
A power of attorney is similar to a medical directive in that it can take effect upon your incapacitation. The person named in your power of attorney receives decision-making authority for important matters regarding your finances, your business or any other affairs listed in the document.
The onset of late-life illnesses or conditions can bring a great deal of uncertainty to you and your family. By having a complete estate plan in place, though, you can rest assured that those around you will tend to your affairs and medical needs.