Estate planning often begins when an adult is relatively young. Professional success, marriage or the birth of a child can inspire individuals to establish estate plans. The documents that they draft can help provide them with peace of mind and extend important protections for their loved ones.
An estate plan shouldn’t be static and remain the same indefinitely. People need to update their estate plans as their lives change. A variety of different circumstances may be opportunities to review and modify an existing estate plan. For example, professionals preparing for retirement often have several powerful incentives to go over and update the terms of an estate plan.
What retirement issues can people address in their estate plans for optimal personal protection?
The possible need for long-term care
Aging adults often want to stay at home or live with their loved ones for as long as possible. Sadly, aging in place is not always the most realistic goal. For many older adults, in-home nursing support might be necessary to age in place. Otherwise, they may need to move into a nursing home. To pay for those services, Medicaid coverage is often necessary. People typically need to plan to enhance their Medicaid eligibility at least five years before they require benefits. Engaging in long-term care or Medicaid planning while preparing for retirement can be a smart decision.
Likely changes in family circumstances
Someone who drafted documents years ago can be in a very different situation by the time they are ready to retire. They have multiple new beneficiaries in their family who they want to include in their estate plan. They may have become estranged from beneficiaries they previously selected. Maybe they got divorced. Those family changes can require significant modifications to an existing estate plan. Additionally, the acquisition or sale of personal assets could also make estate planning updates necessary.
The potential need for outside support
As people age, they may eventually become incapable of managing their own affairs. An estate plan can help protect aging adults from guardianship sought by family members or caregivers. The creation of durable powers of attorney can allow an individual to empower someone they trust to oversee their medical care needs or finances when they can no longer do so on their own behalf.
Professionals who take the time to review and modify their estate plans as they prepare for retirement can derive many benefits from that effort. Adding updated terms to an estate plan can help people limit how vulnerable they are during their golden years.