And so life continues… As you grow older and life unfolds, your estate plan will change because your goals, hopes, dreams, and fears will change. In addition, the law will change, your children and other loved ones will change, and your estate planning attorney will learn even better ways to serve you. (This is part two of three. Be sure to read all three articles.)
As you approach middle age…
Your children are growing and you are likely focused on their college education as well as accumulating assets of your own. It is a challenge to balance paying for college with saving for your retirement. Keep maxing out your retirement savings. Keep in mind that your child can borrow for college, but you can’t borrow for retirement.
If you haven’t already done so, make sure that your parents and your adult children have their own updated estate plans. It will make life much easier for you (and them) in the event of an emergency.
Consider whether now is time to name your adult children in positions of trusted helpers in your estate plan, or not.
Another important middle age consideration is the purchase of long term care insurance. Many plans are now tax deductible and all of the costs of a policy over the years are likely to be less than the cost of one year in a nursing home .
If you get divorced…
If you get divorced, your estate plan will need to be updated, reflecting not only your marital status but any change in goals and preferences.
Even if you’re one of the few who maintains a positive relationship with your ex, you’ll need to update your estate plan. Most wills and trusts include language that maintains that should you be divorced, your ex will be deemed to have predeceased you and will not inherit.
If you have questions about these stages of life and the applicable estate planning, consult with a qualified estate planning attorney. And, please read parts one and three of this three part series. See what happens next…..