4.) If you are retired or getting ready to retire, consider…
Financial contracts (beneficiary designations): More than likely you’ve accumulated assets such as annuities, life insurance, and IRAs that are considered financial contracts. These types of assets are not considered to be part of a probate estate and are generally not accounted for in a will. With that said, you need to designate beneficiaries with your custodian and check to make sure that the designation is accepted and will produce your desired result.
If for some reason your IRA custodian is unable to identify your beneficiary or if the amount of the account value you would like passed on to your beneficiaries isn’t what was anticipated (i.e. account value dropped and the specific monetary amounts you’d required to be left is no longer feasible) this ambiguity can result in legal fees, time and ultimately not leaving what you intended to your heirs. Instead consider leaving a percentage to beneficiaries. No matter what the state of the economy or your account balance, a percentage is always a definable amount.

Estate planning for your retirement accounts (reduce tax liabilities): Most people forget to do estate planning for traditional IRAs, 401(k)s and other types of retirement accounts. These dollars have typically never been taxed and there are changes to law that now afford you the opportunity to control how and when they are taxed.  Tools like the multi-generational IRA and the Roth IRA can drastically reduce the income tax impact your beneficiaries will face when they inherit these accounts.

Long-term care insurance: With Americans living longer, the risk of outliving one’s life savings due to the high costs of medical and long-term care is a tough reality for many. One way to combat this situation is to explore the option of long-term care insurance. This type of insurance is designed to give coverage for necessary medical or personal care services provided, such as a nursing home or in-home care.

5.) If you or a loved one is in a nursing home and you still have assets, consider…
Nursing home or assisted living plan: There may be government benefits available to help pay for the high cost of care while retaining some of your life savings. This can be especially important if there is still a healthy spouse living at home or if there is an interest in passing on some of your life savings to your heirs.  A qualified advisor can explain options such as Medicaid or the Veteran’s Aid and Attendance Benefits Program and help you determine if you are eligible for such programs.

6.) Regardless of your stage of life and where you are in the estate planning process, consider…
Durable power of attorney for health care (living will): These are legally qualified advance directives, giving instructions as to what actions should be taken for your healthcare in the event you are no longer able to make decisions due to illness or incapacitation. Typically, if you do not have a durable power of attorney for health care it can cause problems in the decision making process, if needed, and the decision making will be left to your parents, children or next closest living relative, rather than honoring your wishes.