Having your youngest child finally leave home can be both unnerving and exciting. As you move on to the next phase of your life, however, it’s also time to make a lot of financial changes – and that includes taking a hard look at your estate plan.
While it may seem premature to worry when you’ve got a lot of years left, creating an estate plan is essential for empty nesters to ensure their wishes are fulfilled, their assets protected and their loved ones cared for the way that they want them to be.
4 things you need to check
While it’s always good to review your full estate plan from time to time, there are some specific issues that you may want to address right now:
- Designation of executor: When your children were underage, you probably chose an executor from your extended family to take charge of your estate. Now, you may want to change that designation. You know the dynamics of your family best, but your adult children may feel like the responsibility of handling our final affairs should be theirs, not anybody else’s.
- Powers of attorney: Who did you tap to take care of your financial affairs or make health decisions for you if you’re ever incapacitated? Is it time to revise those designations now that your children are adults?
- Health care directives: Age (and the fact that you don’t have young children at home anymore) may have changed your perspective on end-of-life care. Give yourself a chance to think carefully about what you want, and consider whether your adult children should have more input when and if the situation arises.
- Inheritances: If you died tomorrow, do you think your children could handle their inheritances wisely? Even though they’re now adults, you may want to think about creating a trust so that their inheritances are doled out in manageable chunks.
Estate planning is all about managing the future – and good estate planning is something that involves constant reevaluation. Legal guidance can help you make informed decisions.
