Estate planning for retirement gives you the chance to prepare for death in addition to a comfortable life when you’re not working. Through retirement accounts and withdrawable assets, you can devise a suitable plan to fund a full life for your later years in Pennsylvania. By keeping retirement in mind as you plan, you might even find a way to leave work earlier than you thought possible.
Start with actual retirement accounts
Getting the most out of estate planning for retirement starts with your retirement accounts. These accounts are recognized by the IRS and the U.S. government as sheltered until you retire. In the same way that your Social Security is protected, no taxes, fees or penalties go against any other retirement funds.
Include powers of attorney and health care directives
Estate planning takes into account powers of attorney to act on your behalf in the case that you’re incapacitated. Age is enough of a reason to create a power of attorney because the decreased physical and mental capacities it brings could disable you from paying bills or buying food. Someone given your power of attorney will, instead, keep your estate running with authority over:
- Decisions about your money and its use
- Medical care and other care providers
- Purchase and sale of assets for your estate
Consider withdrawals from a trust fund
Opening a revocable trust, though also suitable for a succession plan, gives you the right to protect your money for later use. Unlike most retirement instruments, a living trust can be withdrawn from without you incurring penalties. You only need the right role given to a trustee.
Preparing your assets for retirement calls for a strong strategy if you want to continue to have a successful life after your working years end. Start by collecting your assets and protecting them now.