In Maryland, most people think about estate planning when they are older. However, it’s never too early to begin planning for retirement and your estate. So what are some of the things you need to think about regarding estate planning and retirement?
An updated will
A will is a crucial document that states who should inherit your property after you die. It also details how your debts should be settled and what should happen to your children if they are minors at the time of your death.
If you don’t have a will, you will need to draft one. However, if you have a will, your circumstances may likely have changed since you wrote it. It is important to look at your will annually and make any required changes. If you don’t update your estate planning documents regularly, they could become invalid or not reflect what you would like to happen with your estate.
Retirement plan beneficiaries
Another important consideration when preparing your estate is your retirement plan. You need to name the right beneficiary for your retirement plan and make sure that the person you name knows what he or she is supposed to do with the money when you die. For instance, you may own an IRA or a 401(k) and had already designated your spouse as the beneficiary. However, if you become divorced and remarry, your new spouse will likely be the beneficiary unless you make a change to this designation — something most people forget to do.
Many retired individuals are more likely to get ill compared to younger people. Therefore, it is important to have a health proxy. This document specifies who should make medical decisions for you if you cannot. It also appoints someone who will act in the best interest of yourself and family members when making these decisions.
There are many things to think about when it comes to retirement and estate planning. By keeping the above information in mind, you can ensure that your affairs are taken care of, both during your retirement years and after you pass away.