Wills, trusts, beneficiaries, and the documents every retiree needs.
Wills, trusts, beneficiaries, and the documents every retiree needs.
A will (who gets what). A durable financial power of attorney (who handles money if you can't). A healthcare power of attorney and living will (who makes medical decisions, and what you want). A HIPAA authorization (so doctors can share info with the people who need it). Without these, the courts decide — expensively and publicly.
Your will does not control IRAs, 401(k)s, life insurance, or TOD/POD accounts. Those pass by beneficiary designation — and whoever is listed gets the money, even if your will says otherwise. Divorces, new spouses, and deceased primary beneficiaries create traps. Review every beneficiary form every 2–3 years.
Revocable living trusts avoid probate, keep estates private, and provide continuity if you become incapacitated. They don't save federal estate taxes for most people because the 2026 federal exemption is $15M per person. Irrevocable trusts can provide creditor protection, Medicaid planning, and estate tax avoidance — but you give up control. Not everyone needs a trust; most retirees with simple estates do fine with well-drafted beneficiary designations and a solid will.
When you die, heirs receive your appreciated assets at fair market value on the date of death — erasing the capital gains tax that would have been owed if you sold them yourself. This is why "never sell your most appreciated stock" is sometimes good estate advice.
The most common estate planning mistake is naming your estate as beneficiary of an IRA instead of individuals. Doing so eliminates the 10-year stretch provision and triggers probate — potentially costing heirs tens of thousands in avoidable taxes and fees.
Take the free Retirement Readiness Score to see where your plan stands across income, taxes, healthcare, and protection. Then talk to a fiduciary if you want help. No pitch, no pressure.
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