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As the kids grow up and leave the nest, empty nesters embark on a new phase of life characterized by newfound freedom and the opportunity to focus on their own needs and desires. Your kids are now “adults,” so there’s no need to worry about who would have custody of them if something happened to you. However, when it comes to any assets you leave behind for them, there are still important considerations when leaving an inheritance to a young adult. It’s crucial not to overlook the importance of estate planning during this transition. Estate planning is a thoughtful process that allows empty nesters to safeguard their assets, protect their loved ones, and shape their legacy. In this blog post, we’ll explore the key considerations and essential steps for empty nesters when it comes to estate planning.

1. Take Stock of Your Assets:

The first step in estate planning is to evaluate your assets comprehensively. This includes your home, investments, savings, retirement accounts, life insurance policies, and any other valuable possessions. Take the time to understand the worth and distribution of your assets, as this will help you make informed decisions about how they should be managed and transferred.

2. Update your Will:

Having a well-drafted will is essential for empty nesters to provide instructions on the distribution of assets and designate an executor to handle your affairs after your passing. It’s likely that you may have had your parents, or siblings named in some roles. Consider whether all of your appointments still make sense or whether you may want to update to now include your children.

3. Consider a Trust:

If you’re not comfortable with your children receiving a lump sum inheritance all at once, you may consider adding a trust to your planning. A trust allows you to transfer assets to a designated trustee, who will manage and distribute them according to your instructions. Trusts can provide benefits such as minimizing estate taxes, protecting assets from creditors, and ensuring a smooth transition of wealth to the next generation.

4. Appoint a Power of Attorney for financial and medical matters:

Designate a trusted individual as your power of attorney to make financial decisions on your behalf if you become incapacitated. Additionally, appoint a healthcare proxy to make medical decisions in line with your wishes when you are unable to do so. Select someone who understands your values and will act in your best interests

5. Communicate Your Intentions:

Open and honest communication is key when it comes to estate planning. Discuss your wishes and plans with your family, including your children. This can help manage expectations, prevent misunderstandings, and ensure a smoother transition when the time comes. Consider involving a professional mediator or estate planning attorney to facilitate these conversations if necessary.

6. Consult with Professionals:

Estate planning can be complex, so it’s wise to seek guidance from professionals who focus in this field. An experienced estate planning attorney and a financial advisor can provide invaluable advice tailored to your specific needs and goals. They will ensure your plan is legally sound, tax-efficient, and aligns with your objectives.

We frequently tell our clients that major life events warrant a review of their estate planning documents. Becoming an empty nester is one of the major life events that typically results in significant changes to estate planning documents. At Satterfield Legal, whether you already have documents in place, or are engaging in estate planning for the first time, we would be delighted to sit down with you and discuss creating a plan specifically designed to fit your needs.

Email: Info@SatterfieldLegal.com

Phone: 980.389.1250

Address: 4500 Cameron Valley Parkway
Suite 370
Charlotte, NC 28211