Why Empty Nesters Need a New Estate Plan
If you created a will when your children were little, your top priority may have been naming a guardian to bring them up. Now that the children are grown and have left the house, they no longer need a guardian. However, you may not be aware of how outdated the rest of your estate plan is, and how it declines to address new matters you could face in mid-life and getting older.
Whether you have created a will from the toddler years of your children or you never got around to creating one, the years after your children leave the house are a perfect time to address your own estate plan. Below are four things to be aware of.
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Powers of Attorney
When you’re creating a will, it’s typical to also create powers of attorney and living wills. Durable general power of attorney appoints an individual to take over your financial affairs should you become unable to take care them yourself.
A health care power of attorney appoints an individual to make your health care decisions should you be unable to, and a living will makes your wishes acknowledged should you have an injury or ailment that you are not going to recover from.
When you have older documentation, the individuals you appointed might no longer be around — or they might not be who you would choose presently. When your documentation is up-to-date, things are going to go more smoothly for you, your children, and other relatives in a time of crisis. And no one is going to stress over “what dad would have wanted.”
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Inheritances and Trusts for Your Children
When you have smaller children, it’s typical to leave everything to your spouse or, should you both pass away, to put funding in a trust for your children, with the funding going to them equally when they come to a specific age.
Now that your children are grown, you may no longer need the trust.
Or you might want to postpone the age they receive their inheritance outright since they are not as mature at age 21 as you thought they would be. You might need a different type of trust to provide for a child that has a disability.
Other life situations, family business ventures, and family dynamics can impact the type of property you want to leave your children and the way you split it. The estate planning process helps you recognize these issues and focuses on finding a fair and realistic solution that that can provide for everyone while decreasing the possibility for family conflict after you pass.
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Life Insurance and Retirement Accounts
Your life insurance policy you purchased when your children were little might be larger than you presently need. Or you might have purchased a fixed premium policy of which cost is about to surge. Now is a perfect time to evaluate your requirements and the specifics of any policies you have presently and shop around for different coverage should you need it.
Life insurance and retirement accounts such as IRAs and 401(k)s pass to the beneficiaries you appoint, instead of as an inheritance through your will. Go over all your beneficiary designations and be sure your retirement savings are not going to go to your ex-spouse or a long-deceased parent.
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Estate Planning Through Trusts
When you created an estate plan being a young adult, it might not have included a trust (other than the one for your children). However, subject to the state you live in and the number of assets you own, there could be very good reasoning for creating a living trust now.
These comprise of avoiding the probate process, expecting long-term care, and providing for a spouse in addition to children from a prior marriage. Trusts can be complex, and an estate planning attorney can counsel you on if a trust might be helpful in your circumstances.
Your empty nest years can be an enjoyable time when you are free of daily parenting duties. Taking time to make or re-examine your estate plan can give you peace of mind, knowing that you have planned for whatever happens in the future.
Source:
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Haskins, J. (2022, May 2). Why empty nesters need a new estate plan. LegalZoom. Retrieved September 27, 2022, from https://www.legalzoom.com/articles/why-empty-nesters-need-a-new-estate-plan
Arizona Family Law
Naming guardians in your will can be part of your estate plan. You may think you’re too young or don’t have enough money to justify the expense, but if you have children, you have priceless assets. There are many considerations when naming guardians for your kids. However, the process doesn’t have to be expensive or complicated.
There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.
