The Estate Planning Documents Every Retiree Should Have

Picture this: a parent has a stroke and can’t speak for a few weeks. The bills keep coming, the doctors need someone to make decisions, and the kids aren’t sure who’s allowed to do what. Without the right paperwork, sorting that out can take court time and a lot of stress.

That’s really what estate planning is about. Yes, it covers who gets what. But just as important, it makes sure someone you trust can step in while you’re still here. Here’s what to talk over with an estate planning attorney.

A will

This is the one most people know. Your will says who receives your belongings and names an executor to carry out your wishes. If you have young children or a dependent adult in your care, it’s also where you name a guardian. Without a will, state law decides for you.

A living trust

A revocable living trust can hold your house and other assets while you’re alive, and then pass them to your family without going through probate. Probate is the court process for settling an estate, and it can be slow, public and expensive. You can usually change a revocable trust whenever you like.

One catch: a trust only covers what’s actually titled in its name. Plenty of people set one up and never move their house or accounts into it. So make sure that part gets done.

A durable financial power of attorney

This lets someone you pick handle your money if you can’t, whether that means paying bills, managing accounts or dealing with the bank. Without one, your family may have to go to court just to get permission to help.

An advance health care directive

This names a person to make medical decisions if you’re not able to, and lets you write down what kind of care you do or don’t want. It’s usually signed together with a HIPAA authorization, so that person can actually talk to your doctors.

Your beneficiary designations

This one trips people up all the time. Retirement accounts, life insurance and many bank accounts go to whoever is named as beneficiary on the account, no matter what your will says. If your ex-spouse is still listed on an old IRA, that’s who gets it. Check these any time there’s a marriage, divorce, birth or death in the family.

Then put it somewhere people can find it

An estate plan only helps if the right people know it exists. Tell your executor and your agents where the documents are, and plan to review everything every few years, or sooner if your life changes.

A quick note: this is general information, not tax, legal or investment advice. The rules change from time to time, and your situation is your own, so check with a professional before you act on anything here.