Estate Planning Tools Every Retiree Needs to Utilize
Retirement should be at a time with few worries, so that you can focus on what really matters, time with your loved ones, doing the things you love, and crossing bucket list items off of your list. Which is why it is important to take the time and care to plan your estate properly, so that you won’t have to worry about it later in life. Many people don’t know where to start with estate planning, but there’s only a few tools you need. Here are three estate planning tools every retiree needs to utilize.
The first estate planning tools that every retiree needs to utilize is a will. A will is the most standard and commonly used legal document for estate planning. You will set out what you wish to be done with your assets upon your death, distributing your belongings to whomever you dictate. You should make sure that you have a will drafted, signed, and witnessed, preferably even notarized, to ensure that it is legally binding and sets your will correctly. Having a will prepared by an attorney is a good idea to be sure that you are distributing your estate exactly as you see fit.
Another key estate planning tools is estate planning that every retiree should be utilizing is a trust. A trust is similar to a will but covers a few additional bases that a will does not. A trust allows a third party, called a trustee, to take charge of assets on behalf of a beneficiary. This can allow you to pass on your wealth to your children without dealing with estate taxes or probate courts, two unfortunate consequences of dividing your assets only through your will. Probate courts can make distributing property more complicated. For the smoothest and simplest transfer of assets, opt for a trust.
The final estate planning tool that every retiree should be utilizing in their estate planning is life insurance policies. You may not think of life insurance as a necessary piece of your estate planning, but it can make a huge difference for your heirs. Life insurance gives your heirs an immediate, lump sum payment or payment structure, tax-free, after your death to help sustain their lifestyle and complete your funeral arrangements and distribution of your estate. A life insurance policy is the perfect final piece of an estate plan.
Estate planning is essential so that you can live your retirement years stress free. And luckily, estate planning isn’t as difficult as some people want you to believe. Make sure that you are using these three estate planning tools for your estate planning for the perfect estate plan. TCG Insurance Solutions can help you with quotes for your unique situation and we hope you find our tips useful on these estate planning tools.
Check out this article on how to make maintaining your home easier in retirement!