Colin Wong
It's good practice to update your will whenever you hit a major milestone, including retirement.
We spend much of our working lives preparing for retirement. Hopefully, by the time we get there, we’ve built up a solid nest egg to live comfortably in our later years.
Retirement is also the point where what you own is at its most settled, which makes it a natural moment to decide where it all goes. Without a plan, your hard-earned assets may not end up where you’d like them to.
Here are some things to consider when writing or updating your will at retirement.
If you don't have a will yet
No matter how much is in your bank account or how many belongings you’ve accumulated over the years, a will is worth having.
Online wills
For people with straightforward estate needs who’d rather not pay attorney fees, a reputable online will platform is a practical option. Depending on the platform, you can usually divide your estate among beneficiaries, say who should take your pets, nominate guardians for children, leave gifts to charities, pass specific items to particular people, and include funeral instructions.
If you don’t have a will, completing one online is better than having nothing at all. You can always update it later, or seek specialist advice if your circumstances change.
Working with an estate planning attorney
For others, professional advice is the more appropriate route. This may apply if you:
Have a large or complex estate
Own multiple properties or investments
Hold overseas assets
Want to exclude someone from your will and anticipate a legal challenge
Are currently separated from your spouse
Getting your retirement accounts in order
For many Americans, retirement accounts such as 401(k)s and IRAs represent one of their most significant assets. It’s important to understand that these accounts generally pass outside of your will, directly to whoever you’ve named as beneficiary on the account itself.
That means your beneficiary designations need to be kept up to date. If you’ve had major life changes, such as marriage, divorce, separation, the birth of a child, or the death of a previously named beneficiary, review your designations as part of your retirement planning.
If you name your estate as the beneficiary of a retirement account, those funds will be subject to your will and distributed accordingly. This can have tax consequences, so it’s worth talking to a tax professional or an attorney licensed in your state before doing so.
Supporting charities after you die
Many of us support causes we care about throughout our lives. Increasingly, people are choosing to extend that generosity through their estate plans as well.
A bequest, meaning a gift left in a will, often lets you give more than you could have afforded to donate while you were living. Even leaving 1% of your estate to a cause you care about can make a meaningful difference, while still allowing you to provide for the loved ones you leave behind.
Taking the next step
You can write or update your will online with EveryWill, and it costs you nothing. Charities cover the cost, and you can choose to leave a gift to one if it feels right.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws vary by state. For advice specific to your situation, please consult a licensed attorney in your state.