Should Your Retirement Planning Include Estate Planning?

Many people are confused about the difference between estate planning and retirement planning and they mistakenly believe that retirement planning is the same as estate planning. These processes are unique but they go hand in hand toward making sure that you have set up your retirement correctly as you move into your senior years. Without retirement planning and estate planning, you might find yourself in a very unfortunate situation as you age. In the state of Pennsylvania, you need to be sure that you take care of both of these needs or your loved ones could lose a large portion of your estate to taxes when you die.

What is the Difference Between Estate Planning and Retirement Planning?

While these two items go together, they are not actually the same process. You will need to make sure that your retirement planning involves considerations for your income and your insurance when you are no longer working, but your estate planning is all about making sure that the people who survive you can access your accounts and assets when you pass away. There are many reasons that you need to organize both your estate and your retirement at the same time. Making sure that you take care of all the details at the same time can save you a lot of problems later.

Pennsylvania is one of the six states that still assess inheritance tax on estates. This can leave your family waiting up to two years while the estate is in probate and then you can end up paying as much as 15% in inheritance tax on the entire estate. This is why estate planning is so critical in Pennsylvania, even if you are not old enough that you think you should worry about this process. You will want to be certain that you consider having a trust in place with a pour-over will so that your loved ones can get the benefit of access to your estate right away after your pass away.

There are many reasons that estate planning is more critical than retirement planning and the uncertainty of the future for your family can be very disheartening if you have not made proper estate plans before your death. Retirement planning should always include updating your trust, your will, or other arrangements that you want to have in place when you are gone. This is the best way to protect your loved ones from discomfort and to ensure that you will be provided for properly in your old age as well.

How Are Estate Planning and Retirement Planning Linked?

Estate planning is linked with retirement planning because you need to make sure that your retirement accounts and your other investments are covered in your trust. When these items are not linked, it can lead to major issues when your family needs to inherit. If you have a trust with a pour-over will in place, this will not be as complicated, but you will still need to be sure that your retirement accounts are set up with beneficiaries as well.

There are many layers in the retirement and estate planning process. You need to think about all of the various steps that you need to take care of so that no essential steps are skipped. This can make all the difference in the long run and your family will be grateful that you thought of them so carefully when you set up all of your accounts.

Because this process is so complex, you will need some help with it. Having an expert lawyer work on the process with you is critical. Most people cannot structure all of their retirement and their estate planning without the help of someone who knows all the rules and regulations related to these processes. Estate planning in a state with inheritance laws means that you need to be sure that you have done the process of arranging all of your affairs for your estate correctly.

At Antanavage Farbiarz, our team takes pride in offering expert estate planning services of various kinds for your needs. Our team can explain all aspects of the estate planning process and work with you on different kinds of estate and trust plans as well as retirement planning. We can also give you guidance on making donations through wills, trusts, gifts, and other methods as well. If you are ready to discuss your will or estate planning concerns or your retirement planning, call us at (610) 562-2000 or use our contact form to schedule an appointment.

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