Reviewing Your Estate Plans as Empty Nesters: Wills, Trusts and Beneficiaries

Your children are grown, they’ve left home and now it’s happened: you’re an empty nester.

You’re probably trying to figure out what to do with all that free time…and free space! This might mean exploring new hobbies, rekindling old ones or simply enjoying the peace and quiet in your home.

Before you do anything, there’s one important life task to tackle: take a look at your estate plan(s). Now is the ideal time to consider if your life goals have changed, and if so, there’s a good chance your legal documents need refreshed.

Here are a few steps to take as you review your estate plan.

Update your will

A will is the foundation of an estate plan. It states how you want your assets distributed and your wishes executed when you pass away.

There’s a good chance you wrote it when you were at a different stage in life. For example, your children were younger, and you likely named guardians for them. Now, if they’re moved out, that likely doesn’t apply to their situation.

Take some time to review your plan with an advisor to see if they suggest any changes. Consider questions like:

• Is my named executor still the best choice?
• Should I distribute assets equally among my children, or consider their current needs or circumstances?
• Are there charitable causes or organizations I’d like to support?

Tip! Even if you don’t change anything, err on the side of caution and revisit your will every few years with an advisor.

Revise your trust documents

Trusts provide greater control over how and when assets are to be distributed. They can help you simplify the transfer of property (especially if you own property in another state or have investment accounts), bypass probate court (unlike a will) and manage tax implications.

Now that you’re an empty nester, you need to consider how things have changed and make (any) new modifications around (any) new circumstances to your trust.

Maybe you want to name a new trustee or distribute assets gradually to your adult children to encourage financial responsibility. Maybe you want to include provisions for future grandchildren, protect assets in the event of divorce or support a child with special needs.

Whatever your new wishes, you need to make sure they’re covered.

Tip! Consider a corporate executor to administer your trust. An unbiased party is often the best route to ensure your wishes are respected without any issues.

Check your beneficiary designations

Your beneficiary designations are just as important as your will and trust, if not more. That’s because assets like life insurance, retirement accounts and bank accounts with transfer-on-death (TOD) provisions pass outside of your will and directly to the person(s) you’ve named.

Review your beneficiary forms every so often to ensure your accounts reflect your current relationships and intentions. Don’t let a former spouse, outdated designation or a missing contingent beneficiary cause confusion or unintended consequences.

Tip! Consider whether your adult children are ready to receive your assets outright, or whether naming a trust as beneficiary would be better for your situation.

Coordinate everything with an advisor

You’ve spent decades building financial security for your family. You deserve a plan that reflects your values, supports your loved ones and provides peace of mind.

Whether that means helping fund a grandchild’s education, supporting a favorite nonprofit or ensuring your children receive their inheritance in a way that sets them up for long-term success, you need to partner with a Wealth Advisor and Estate Attorney to make sure it’s done right.

A conversation with an advisor can uncover opportunities to strengthen your plan and ensure every part of your financial life is working together.

Tip! Make sure you choose an advisor that listens to you and puts your best interest first in every decision.

Let’s connect

No matter where you are in your estate preparation, our wealth management team can help. We have experience you can trust to help you reach your financial goals.

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This information is prepared for informational and educational purposes. Always consult a qualified tax advisor for personalized guidance. Investments and other non-deposit products are not deposits, not FDIC insured, not guaranteed by the bank, and may lose value.