Retirement is a difficult subject for many people to think about in Maryland. It can be hard to imagine what you will do when you are no longer working, and estate planning is often overlooked in this regard. Here are some of the most important aspects that you need to consider when setting up your estate plan before retirement.
A trustee
This is someone you trust to manage your estate. Most people choose either their spouse or an adult child as the trustee. This person will be in charge of your estate and make sure that everything gets handled properly. It’s important to choose someone you trust to do this as they will have a lot of power over your estate.
Retirement plan beneficiaries
Assume that you have an employer plan account or IRA. If you pass away, who should inherit this money? You will want to make sure your beneficiary designations match up with the estate plan documents you have created. It could be problematic if they don’t line up. If you have an estate plan but haven’t done beneficiary designations for retirement accounts or insurance policies, your estate might get distributed in a way you wouldn’t prefer.
Revocable trust
A revocable trust can be very helpful in estate planning. This will allow you to have control over your estate plan while still being able to change it as needed. You can also use this type of estate planning tool in order to avoid probate at the time of death. The last thing you want is an expensive and lengthy estate administration process for your remaining family members.
These are just a few estate planning aspects that you should consider before retirement. Don’t let them slip by because it is easy for people to think about other things first when they transition into retired life.