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3 retirement issues that people can address with estate planning

On Behalf of | Mar 11, 2024 | Estate Planning

The years leading up to retirement are often when adults start thinking about their legacies. Even those who have never bothered with estate planning before may decide to draft documents when they know they may soon leave the workforce.

The need to live on a fixed budget during retirement and the possibility of medical challenges make estate planning crucial for those preparing for their golden years. What retirement concerns can people address with their estate planning paperwork?

Long-term care costs

One of the biggest issues people may have later in life is a decline in health that makes them dependent on outside support. Long-term care requirements could involve having nursing professionals visit someone’s home or a move to a nursing home facility. The cost for such support can add up to thousands of dollars per month and might be more than the average person can afford even with robust retirement savings. People may plan before retirement to make it easier to qualify for Medicaid or to otherwise arrange to cover long-term care costs later in life.

The risk of incapacity

Some people already know that Alzheimer’s disease runs in their families. They may worry about dementia and other age-related health challenges. Someone who becomes incapacitated later in life could be at risk of guardianship or conservatorship. Either family members or professional care providers could strip someone of the legal right to manage their own daily life and finances. A durable power of attorney established before someone declines could allow them to name someone they actually trust to handle their affairs should they become incapacitated.

Asset preservation

Perhaps someone worries that they might face a lawsuit or a creditor claim after they retire that could put their home or other resources at risk. Maybe they worry about medical creditors laying waste to their estate after their passing. If people take the time to create a trust or change how they hold certain resources, they may be able to protect their assets as they age and even after they die. Proper planning can help someone preserve a legacy for their loved ones and ensure their financial comfort later in life.

Taking the time to create a comprehensive estate plan can be a very beneficial move for someone preparing for retirement. Seeking legal guidance is a good way to get started.