Looking after your estate

Though planning for your heirs may seem like a no-brainer, retirement is a good time to re-think how you've dictated your assets will be distributed. It's also a good time to make sure you have all the basic documents necessary to cover aspects of asset allocation such as a will, a revokable or non-revokable trust, and other important documents such as a power of attorney and health care proxy (see Attorney Todd Ratner's article in our Finance section). "A comprehensive plan will also address incapacity issues, that is, who will manage your affairs should you become unable to manage your affairs," said Gina Barry, legal columnist for PRIME. "Typical triggers for estate planning include getting married or divorced, having children, purchasing real property, enduring the loss of a loved one, admitting a loved one to a nursing facility, receiving an inheritance, or being diagnosed with an illness." It's also important to note that estate laws may vary by state (another thing to consider when planning to relocate), requiring that you review your documents when you complete your move. "Ideally," Barry said, "An estate plan should be reviewed every year. It is amazing how quickly circumstances or relationships can change." "One way to make yourself review your estate plan is to make it your New Year's resolution," she continued. "It is such an easy resolution to complete, and you start off the year on a positive note when you complete your resolution. Many people still will not review their plan each year. At a minimum, you should not let more than three years pass without reviewing your plan." A word about estates and taxes Your annual estate review is also a good time to talk with a professional about any tax implications for benefeciaries and how you can plan for these concerns.