4 Ways that Retirement Impacts Your Estate Plan
Retirement can have significant implications for your estate plan. Here are four ways retirement can impact your estate plan:
1. Changes in income and assets: Retirement may bring about changes in your income and assets. You may have a reduced income during retirement, which could affect how much you can save or invest. Additionally, you may start drawing from your retirement accounts, which could alter the composition of your assets. These changes may require updates to your estate plan, including the distribution of assets and the naming of beneficiaries.
2. Need for long-term care: As you age, you may need long-term care. This could include medical care, nursing home care, or other types of assistance. The cost of long-term care can be significant, and it may affect your estate plan. You may need to consider strategies for paying for long-term care, such as purchasing long-term care insurance or setting up an irrevocable trust.
3. Estate taxes: Your retirement may affect the amount of estate taxes that will be due upon your death. If you have a substantial estate, you may need to consider estate planning strategies to minimize estate taxes. This may include setting up a trust or gifting assets to your heirs during your lifetime.
4. Changes in beneficiaries: Retirement may also prompt changes in your beneficiaries. For example, you may want to update your estate plan to include grandchildren or other new family members. Alternatively, you may need to remove beneficiaries who have passed away or with whom you are no longer in contact.
It is essential to review and update your estate plan regularly, particularly during major life events such as retirement, to ensure that it continues to reflect your wishes and goals.
Work with an Experienced Virginia Estate Planning Attorney
We regularly work with individuals as they retire. Contact Wilson Law PLC today at 866-603-5976 to set up a meeting or fill out our contact form and we will call you to schedule your meeting.