Estate planning is just as important as planning for retirement

When Nevada residents plan for how they will spend their retirement years, some may neglect to consider what will happen if they become incapacitated or die. Contemplating these events may not be pleasant, but it is necessary. Estate planning needs to have as much priority as retirement planning — especially since no one knows what the future holds.

The fact is that people are living longer, and at the same time, the likelihood of contracting an age-related illness is on the rise. This means that more people could end up being unable to handle their affairs on their own toward the ends of their lives. Therefore, it is essential to plan. A durable power of attorney will allow a trusted individual or individuals the ability to handle financial matters, and a health care power of attorney will allow a person or persons to make medical decisions based on the incapacitated person’s wishes, while medical directives can provide guidelines based on those desires.

A will outlines to whom a party’s assets are to be distributed upon death. Trusts will allow that person to determine when and how assets are distributed, along with providing certain other benefits to both the creator of the trust and the beneficiaries, such as a reduction in the amount of taxes that may be owed on the estate. Without at least a will, the state of Nevada decides what happens to the estate.

Individuals should be able to look forward to their retirement years. Part of that enjoyment can come from having peace of mind from knowing that they have accounted for future possibilities through estate planning. In addition, family members may also rest easy knowing that a plan is in place.

Source: USA Today, “Big retirement mistake: Boomers with no estate plan“, Rodney Brooks, April 8, 2015