In such a youth-oriented society, it’s easy to feel over the hill at age 50 or 60. It really is the prime of life, and that means it’s time to update your affairs so you can enjoy retirement and your grandchildren.
Get the proper legal documents in place. That includes a Last Will and Testament, Financial Power of Attorney, Health Care Power of Attorney, Living Will Declaration and maybe a Living Trust.
Without a will specifying who’s in charge and who gets what, the wrong people might inherit your assets. For example, if you wanted to leave all of your assets to two of three of your children because you already gave the third child money, it needs to be specified in your will. Without a will, Ohio law would force your assets to be paid in equal shares to your three children, with no regard to your wishes.
Who’s In Charge?
If you become disabled, you’ll need a Financial Power of Attorney, Health Care Power of Attorney, and Living Will Declaration to name someone who will handle your affairs. Without these documents, the court will appoint a guardian to oversee your affairs. That’s a lot of money and paperwork that can be avoided with smart legal planning. Keep copies of these documents handy so your family can find them when needed.
Coordinate your bank accounts, investments, retirement funds, life insurance, real estate and cars — the titling, the beneficiaries and the asset allocation. This may take a team, which might include your attorney, financial planner, tax preparer, banker and life insurance agent. Your family will thank you for making sure everything is organized and easy to find.
Take advantage of senior discounts and bank accounts. Turning 50 makes you eligible for AARP. Sign up and use it for the many senior discounts available — don’t let it make you feel old.
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Many folks see springtime as a time of renewal, new life and a fresh start. When you start your household cleaning this year, think of your important papers, too.
Everyone should have a Last Will and Testament, a Financial Power of Attorney, a Health Care Power of Attorney and a Living Will Declaration. Too many people see these documents as a once-and-done proposition. Nothing could be further from the truth. They need to be reviewed on a regular basis to make sure they still meet your needs. Times change, and so must your documents.
Keep Up
How do you know when it’s time to make a change? A good time frame is that you should review your documents every three to five years. Tax, trust, estate and financial law changes may impact your documents.
For example, the repeal of the Ohio estate tax rules several years ago allowed many folks to simplify their planning, eliminating the need for complicated Trust Agreements. The ramifications of the most recent tax changes are still being evaluated. That could signal a trip to the attorney to find out if they affect you.
Changes in family situations can mean updates for your will or powers of attorney. Examples are illness, death, marriage or divorce of a family member, executor, trustee, guardian or beneficiary. A job change or loss also could impact estate planning documents.
If you have started your own business or become involved in a partnership, or closely held corporation, not only might your documents need to be changed, but your tax situation could be affected. A large increase in assets from an inheritance is another signal that it’s time for a review.
Changes in mental or physical health requiring long-term health care planning definitely mean that you need to consult an elder law attorney for guidance.
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Legal
Want to Have Fun in Retirement?
Keep Working (Just a Bit)
By Laurie G. Steiner
You finally retired from your job.
For some, that is a welcome relief — the end of a career they are happy to put behind them. For others forced to retire when they didn’t want to, depression and frustration may set in. For still others, retirement might mean financial ruin because of health care costs.
If you have energy to burn, want to try something new, or need a job to make ends meet, finding your passion is the key to enjoying work after retirement. Working at a job that you’re passionate about can be invigorating, meaningful and engaging while keeping your mind and body sharp. Research shows that people who work well into their 70s, 80s and even 90s live longer than those who don’t work.
What You Know
Ageism can be a barrier to finding a new job. Focus on your accomplishments and achievements, not necessarily your skills. Highlight decision-making and supervising abilities. Who can benefit from your talents and experiences? If you need help, start online with workforce50.com or the Encore Career Network at matureservices.org.
Ideas for post-retirement employment:
Pros, Cons and Everything In Between
The Scoop on Joint and Survivorship Accounts
The Goal for Most People? Avoid Probate.
One method:
Joint and Survivorship accounts
Got it. How does that work?
Two people set it up
When one dies, the other owns it
Good for spouses
So what can go wrong?
Multiple owners—who gets what?
Parents leave to one child, not others
Creditors of one owner can attach the account
Divorce of one owner
Lawsuits
What is better for non-spouses?
Payable on Death to Child
Transfer on Death to Child
Transfer on Death to Child or by Naming the Child the Beneficiary
... Remarriages are on the rise. Four of every 10 marriages are now remarriages, and half of previously married seniors have remarried again, according to a Pew Research Center study.
Let’s say partners each have children from a first marriage, and they are getting married. What issues do they need to think about? In addition to all of the family dynamics, there are many economic and personal issues they need to consider, such as:
• Income taxes
• Prenuptial agreements
• Pension, 401k and Social Security benefits
• Cost-sharing
• Estate planning documents
DOUBLE-CHECK DOCUMENTS
Consider the following real-life example. A couple remarried in their 50s. They each had children from a first marriage. The husband died 20 years later. He wanted to provide for his second wife. His will stated all of his assets went to his wife, with the understanding that on his wife’s death those assets would go back to his children.
However, what actually happened is when the husband died, the surviving wife — who lived a long time after that — simply combined their assets. On her death, the money went to her children. The husband’s children got nothing. They did not believe their father meant to do that with his assets. He didn’t, but he didn’t plan properly.
So, what should he have done? He should have set up what is commonly called a marital trust. The trust would have held the assets for his second wife when he died, but upon the wife’s passing the assets would go to his children. The trust document prohibits the widow from transferring the assets to her children.
LIFE CHANGES REQUIRE UPDATES
As for other important documents, everyone should have a durable financial power of attorney, durable health care power of attorney and a living will declaration. When you divorce or get married, update documents to reflect your new situation.
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