Retirement is a while new phase of life. It can be a great time to spend with friends and family. You can finally enjoy what you have worked so hard for all these years. However, it is not the time to drop the ball on your estate plan. Just as you did during other major life changes, you should update your estate plan once you enter retirement in Missouri.
Consumer Reports explains you want to review what you already have in place and make updates, plan for future needs and ensure you are making the most to avoid high tax rates. Here is a closer look at these three estate planning steps.
- Update
You need to go through your estate plan and update anything that needs it. Perhaps you need to add a grandchild to your will or you have a new asset to add into your plan. Make sure it is all up to date.
- Plan for the future
Now that you are getting older, you will need to start thinking about what could happen in the future. This means planning for future health care needs and the potential for becoming unable to manage your own finances. You should set up a power of attorney and a health care proxy, along with a living will.
- Manage taxes
Your taxes may change once you retire, so you need to manage your estate plan to reduce tax liability if possible. You may convert your retirement plans to a more tax-friendly plan or even create a trust for some of your assets.
Do not let your estate plan linger without making the necessary adjustments. After retiring, you may want to just sit around and do nothing, but it will put your mind at ease to know your estate is in order. So, get that out of the way first and then enjoy your retirement.
