Estate Planning: Securing Your Legacy for the Future

As we plan for our retirement, it’s essential to think beyond our own lifetimes. Estate planning is a key step in ensuring that your hard-earned assets are passed on to your loved ones according to your wishes. Though it can feel like a daunting process, taking the time to create or update your estate plan can give you peace of mind, knowing your legacy is secure.

Why Estate Planning Matters
Estate planning is more than just writing a will—it’s about preparing for the unexpected and ensuring that your finances, property, and even healthcare decisions are managed according to your preferences. Without a plan in place, the fate of your assets could be determined by state laws, which may not align with your personal wishes.

A well-crafted estate plan can:

• Provide Financial Security for Loved Ones: By designating beneficiaries and outlining how your assets should be distributed, you can ensure that your family is taken care of and minimize the stress on them during a difficult time.
• Minimize Tax Liabilities: Proper estate planning can reduce the tax burden on your heirs. Strategies such as gifting assets during your lifetime or establishing trusts can help preserve more of your estate for your loved ones.
• Ensure Your Healthcare Wishes Are Honored: Estate planning allows you to create documents like a living will or healthcare power of attorney, so your medical care is managed according to your preferences in the event you’re unable to make decisions yourself.

Key Elements of an Estate Plan
Estate planning may seem complicated, but it can be broken down into a few essential components:

• A Will: This legal document outlines how your assets will be distributed after your passing and names an executor to carry out your wishes.
• Power of Attorney: Designating a financial power of attorney gives someone you trust the authority to manage your financial affairs if you become unable to do so.
• Healthcare Directives: A living will and healthcare power of attorney allow you to express your preferences for medical care and designate someone to make healthcare decisions on your behalf.
• Trusts: Trusts can be a useful tool for managing assets during your lifetime and after your death. They offer flexibility in how and when assets are distributed to beneficiaries and may provide tax benefits.
• Beneficiary Designations: Ensure your life insurance policies, retirement accounts, and other financial instruments have up-to-date beneficiary designations. These designations supersede what’s written in a will, so it’s crucial they reflect your current wishes.

When to Start Estate Planning
It’s never too early—or too late—to start estate planning. Life events such as marriage, the birth of a child, retirement, or the purchase of a home are all excellent times to create or revisit your estate plan. Even if you already have a plan in place, it’s important to review it periodically to ensure it still aligns with your wishes.

The Importance of Professional Guidance
While you can start the process of estate planning on your own, it’s highly recommended to work with legal and financial professionals to ensure your plan is comprehensive and legally sound. An attorney who specializes in estate planning can help you navigate complex decisions and ensure your documents comply with state laws.

Protecting Your Legacy
Estate planning is about more than just protecting your assets—it’s about protecting your legacy and ensuring that your loved ones are cared for. By putting a plan in place, you can reduce uncertainty, prevent family conflicts, and leave behind a lasting impact on the people and causes you care about most.

Whether retirement is decades away or right around the corner, naming a beneficiary is an important step to passing your retirement savings and benefits on to the loved ones of your choice. Help secure the future of your finances by taking a moment to ensure that your beneficiary information is up to date. Log into the Member Self-Service portal to check and/or update your information today. For assistance, please contact us.