Things to Consider When Approaching Retirement & Estate Planning
Transitioning into retirement can be a daunting process. Planning for this chapter in life can be even more intimidating. In both situations, it is important to take an honest look at your financial picture and change areas that need adjustment – if possible. If you or someone you know is nearing retirement age and needs to adjust his or her estate plan, or is just starting to plan for the future, contact the most experienced estate planning lawyer Brooklyn has to offer to help you with an important and often ignored area of life.
Whether you have spent the past several decades planning your estate and retirement or you are just beginning to look into this, we have provided a list of several things you should consider when approaching this subject.
Look at Your Net Worth – the Center for Economic & Policy Research notes the median net-worth (i.e. total assets minus total liabilities) for those approaching retirement, people between the ages of 55 and 64, has dropped by more than $10,000 since 1989. What’s worse is that it is well under the estimated health-care costs expected during the golden years of $200,000. Ways to offset this alarming picture include “catching-up” on contributions to retirement accounts including IRAs and 401(k)s.
Estate Planning – several types of financial tools should be considered in order to diversify your estate plan, including life insurance (whether whole or term), a will, a durable power of attorney, a living will (discussed below) and a master list of your survivors as well as a trust.
Delay Your Social Security Benefits – while the monthly check may not be anything to call home for, waiting until you are closer to age 70 will increase the benefit amount, as opposed to taking benefits immediately upon becoming eligible. According to the Social Security Administration, eligibility for benefits begins at age 62. Full retirement age is between the ages of 65 and 67, depending on the year you were born. Taking benefits prior to full retirement age reduces the amount. Conversely, taking benefits out later increases the benefit amount.
Consider a Living Will – A living will is an important tool in general, whether the person is young or old. Known as an “advance directive”, this document addresses sensitive issues, such as whether prolonged-life measures should be taken if an individual’s health declines so drastically that recovery is not expected.
Seek Out Long-Term Care – Many of us are living longer than previous generations, and with the beauty of an extended lifespan come health issues that will expectedly come as time progresses. Simply put, long-term care insurance provides monetary coverage for the cost of caring for someone with a medical condition that would require supervision (such as a nursing home or home healthcare).
Estate Planning Lawyer Brooklyn
Estate planning in New York can be complex. Do not try to handle this complicated legal and procedural area of the law alone. An experienced estate planning lawyer in Brooklyn can simplify the process and help ensure a long-term plan is properly prepared. The legal professionals at Alatsas Law Firm have decades of experience in several areas of family law. Call (718)-233-2903 or click here today to schedule your initial evaluation.