If you’re like the overwhelming majority of workers in the United States, you’ve already started considering your life after you’ve retired. However, it’s imperative to understand that without a comprehensive estate plan in place, your efforts to save for retirement may be for naught. As such, the following blog explores what you should know about these two important processes, including how they intertwine with one another, as well as the importance of working with a Medina, Ohio estate planning lawyer to help you fight for the best possible outcome.
Why Do I Need an Estate Plan?
Estate planning is critical for a number of reasons. One of the most important reasons you should establish an estate plan is to ensure that your Beneficiaries are protected. By creating a Will or Trust, you can ensure that you are able to care for your loved ones even after your passing. For example, you can leave assets to help your spouse pay off the mortgage or help send your grandchildren through college.
You should also consider that without an estate plan, your assets will be distributed according to Ohio’s Intestacy Laws. Essentially, if you fail to create an estate plan, the state will assume control of your assets and distribute them to your next-of-kin according to a pre-established method. This means certain individuals whom you do not wish to inherit anything from your estate could be entitled to your assets.
What Aspects of Retirement Should I Consider?
When planning your estate, ensuring you take the different aspects of retirement into consideration is critical. Generally, one of the most important matters you’ll need to consider is your finances. For example, you may wish to establish a Financial Power of Attorney, as this individual will be responsible for making financial decisions on your behalf. This includes managing accounts like your 401(k) and IRA to make investments and payments in the event you are incapacitated or otherwise unable to make these decisions on your own. You’ll also need to consider matters like taxes and required minimum distributions to include in your estate plan.
Another critical aspect of your retirement plan that you’ll need to consider is Beneficiary Designations. Essentially, when you retire, you’ll need to ensure that you establish who will receive things like your retirement plan or life insurance. Generally, you can name individuals to assume these payments, or you can name a Trust as the Beneficiary Designation, thus allowing you greater control over how these assets are handled.
As you can see, retirement and estate planning often go hand in hand. That is why it is critical to connect with an experienced attorney at Krause Law. Our firm understands how overwhelming these matters can be, which is why we will do everything in our power to help you make these important decisions so you can achieve peace of mind for the future. Contact us today to learn more.
