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, and not just for Baby Boomers. People usually think that it’s something they can put off and deal with later. 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.
Talk with an experienced estate planning attorney to review these points and others as you create your strategy for the future.
Reference: USA Today (April 8, 2015) “Big retirement mistake: Boomers with no estate plan”