Every estate plan is a reflection of your life and the legacy you wish to leave behind. Although for some, knowing when to start estate planning and taking the first steps is difficult. In fact, many retirees lack a simple will, risking their inheritance and life’s work in California probate court.
According to a 2023 Caring.com survey, less than half of US households over the age of 55 have estate plans. What’s more, the number of households over 70 with a Will or Trust dropped to 63%. The good news is, even in your 60s, it’s never too late to start estate planning. Whether you didn’t start for life reasons or simply recognize the need for an estate plan, now is the time to take action. Let’s look at some reasons why you need an estate plan.
One Step at a Time
Taking the first steps toward preserving a legacy can be difficult. Individuals often avoid estate planning for a variety of reasons — misconceptions about wills and other documents, insecurity about assets, or feeling overwhelmed by the process.
Estate planning at 60 does more than help you make inheritance decisions; it helps avoid financial pitfalls and family disputes and safeguards your interests in case of incapacitation or cognitive decline. While every estate plan is unique, certain key documents should be included:
- A Last Will and Testament: This document outlines how your assets should be distributed after your death.
- Approved Beneficiary Designations: Ensure your retirement accounts, life insurance policies, and other financial accounts have up-to-date beneficiary information.
- An Advance Health Care Directive: This specifies your wishes regarding medical treatment if you become unable to communicate them yourself.
- Durable Power of Attorney: Appoint someone to manage your financial affairs if you become incapacitated.
- A Personal Letter of Intent: Although not legally binding, this letter can express your personal wishes and provide guidance to your executors and beneficiaries.
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Depending on your goals, creating a revocable living trust might be beneficial. This legal entity can receive and manage assets, bypassing probate entirely, which allows heirs to receive their inheritances without court intervention. Revocable trusts also let the living grantor (the creator of the trust) change instructions, remove assets, or terminate the trust.
If you already have an estate plan, then it’s important to update it regularly, particularly if your last will was written long ago or if significant life changes have occurred. You should review your estate plan in the event of the following:
- Marriage or Remarriage;
- Divorce;
- New children or children added to the family;
- Significant changes in your legal, health, or financial circumstances; or
- Time has elapsed since your last review.
Getting the Guidance You Need
No one wants to face the possibility of becoming incapacitated, which is why it’s important to create a comprehensive estate plan while you are competent. This is also the perfect time to speak with your children about wealth transfer.
Ready to get started, but not sure who to call? At Hatley Law Group, APC we understand the importance of estate planning when nearing retirement, and can help you navigate these critical decisions with confidence and clarity. Our team is dedicated to handling your life planning with the respect and care it deserves, including how to set up an estate plan according to your wishes. If you’re looking for answers to your toughest estate planning questions, contact us today.
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