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Why Coordinate Retirement Planning and Estate Planning?


At first glance, you probably assume that the only connection between estate planning and retirement planning is age. Statistics show that many people retire around 65-67 years old, primarily because they can collect their full Social Security benefit and become eligible for Medicare. This is roughly the same time that many individuals face their own mortality and recognize the importance of estate planning.

There is a lot more to the relationship between estate and retirement planning than age. They are very different concepts, yet you can maximize and enhance both when you properly coordinate strategies. A Dade City estate planning lawyer can advise you on your options and assist with creating an arrangement that suits your needs, but you might find it useful to review the basics. 

Comparing Estate Planning and Retirement Planning: Some basic definitions can help explain how these concepts are different, yet complimentary:

  • Retirement planning covers the time period after you exit the work force or greatly reduce your participation in it. You must assess how you will support yourself through different forms of income that are not related to wages or a salary. It is also important to consider long-term health care needs and how you will spend the time you would have devoted to work – such as travel, hobbies, and favorite activities.
  • Estate planning is developing strategies and making essential arrangements in anticipation of death, including your will and trust. It also encompasses planning for incapacity. If you suffer from a medical condition that renders you unable to make decisions, even on a temporary basis, regarding your finances or health care, different components of your estate plan kicks in. The relevant documents enable your agent to step into your shoes, instead of making your loved ones go to court.

Factors to Consider with Estate and Retirement Planning: From the above, you can see that your plan for retirement should coincide with your estate planning strategy – and you should consider your retirement benefits when creating your estate plan. Therefore, keep in mind the following points:

  • Keep current with who you have designated as beneficiaries on retirement accounts, since these will pass to these individuals separately from your will. They will also be excluded from the probate process.
  • Understand the benefits of Roth IRA in retirement planning, which may offer more advantages compared to a traditional IRA. Your Roth IRA can continue to earn interest without the required minimum distributions (RMDs); once passed to your heirs, they must comply with RMD rules but the amounts may be tax-free.

Rely on a Florida Estate Planning Attorney for Legal Help 

As you can see, coordinating retirement and estate planning gives you peace of mind knowing that your exit from the workforce, potential incapacity, and end-of-life issues are within your control. If you would like more information, please contact The Law Office of Laurie R. Chane. You can set up a consultation at our office by calling 352-567-0055 or filling out our online contact form. Our team serves clients in a wide range of estate planning matters, so we are happy to advise you.



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