The segment of the population known as “baby boomers” is beginning to retire from the workforce. If they have not already created an estate plan, it is imperative that they do so. Estate planning can include medical directives, powers of attorney, a trust or a will. New Jersey families may feel intimidated if they are of the boomer generation and haven’t yet started determining their end-of-life directives, but it is never too late to make such an important change.
People are living much longer lives, so even if a boomer retires around the national retirement age of 67, he or she could live another 20 or 30 years. A significant portion of the population over the age of 65 requires long-term care at some point in their lives, and those costs are not covered by Medicare. Insurance for long-term care does exist, but there can be gaps in coverage and expensive premiums. An estate plan can determine what money should be designated for the person’s care post-retirement.
Though some may be concerned about estate taxes consuming a significant portion of their assets, most estates do not pay federal estate tax unless they are very large in value. It is still a good idea to have an estate plan in place to reduce costs that heirs could come up against. An estate plan is not only meant to contribute to the care of those who are nearing the end of their lives, but it can also facilitate the passing of one’s estate to his or her beneficiaries.
New Jersey families who may have questions in reference to estate planning may want to seek advice on the precise laws that encompass this important subject. They do not need to feel ashamed if they are nearing retirement age and haven’t created an estate plan. It may ease their minds to know that their wishes will be honored at the end of their lives and that the ones they love will be cared for.
Source: Fox Business, “Estate Planning Mistakes Every Boomer Should Avoid”, Casey Dowd, Aug. 21, 2014
Source: Fox Business, “Estate Planning Mistakes Every Boomer Should Avoid”, Casey Dowd, Aug. 21, 2014