Experts caution that Florida baby boomers must not neglect estate planning as part of their retirement planning. However, people of this age group are not the only ones who tend to avoid these matters. While planning for what happens to one’s assets after one’s death may not be a pleasant topic, doing so is important for loved ones.
Furthermore, estate planning is also important for ensuring that one is taken care of in the case of being incapacitated by illness. Documents such as a living will, a health care proxy and a power of attorney let loved ones know an individual’s wishes for medical treatment and appoint someone to make medical decisions and handle financial matters in the event they become incapacitated.
People should consult both a financial planner and an attorney to make sure that they understand issues like state law and taxes. It is also necessary to keep beneficiary designations updated on retirement accounts, life insurance policies and other similar assets, as these designations generally override any provisions in a will to the contrary. In addition to ensuring that legal documents are prepared properly, communicating with loved ones is one of the most important aspects of estate planning. If people know ahead of time how assets will be distributed and why, there is less likely to be conflict after the death of the owner.
Individuals may think that because they are single or because they have few assets, estate planning is not necessary, but doing so is important for all adults. They may also be unaware of potential roadblocks or solutions in complex situations. For example, an individual may wish to disinherit a family member. This intent may need to be specifically stated in the will because otherwise a court may assume that the person was unintentionally left out.