When you’re focused on planning for retirement, it’s easy to overlook how you can protect your assets for both yourself and your family. While there’s no one-size-fits-all approach, your first step is to have the three basic estate planning tools in place: a will, a medical directive, and a power of attorney.

It’s important to not only have these essential documents but also to keep them updated so they reflect your current wishes. Join Ian Fergusson, RICP® in this week’s Money Wisdom Question Series as he expands on the proper steps to preserve your assets for the ones you leave behind.

Review Your Beneficiaries

First and foremost, make sure the beneficiaries on all your retirement accounts are designated properly. For example, if you want your assets to go to your spouse in the event of your passing, your spouse must be listed as the primary beneficiary on all your retirement accounts – whether that’s a 401(k), 403(b), Roth IRA, or traditional IRA. These beneficiary designations generally override the provisions of a will.

Add Contingent Beneficiaries

It’s a difficult scenario to consider, but it’s important to plan for the possibility that both you and your spouse could pass away at the same time. In that case, you want to have secondary or contingent beneficiaries named, such as your children, grandchildren, or other loved ones.

Since beneficiary designations can be updated at any time, it’s wise to revisit them periodically to ensure they still align with your wishes.

Consider Trust Planning

Another important aspect of legacy planning is the use of trusts. You may consider a trust if you want to protect your assets from long-term care costs or other risks, avoid probate, or minimize estate taxes. Whether a trust is right for you will depend on your unique financial situation.

Seek Professional Advice

No matter where you are on your retirement journey, meeting with both a financial professional and an estate planning attorney can help you navigate the road ahead. They’ll review your specific circumstances and provide personalized recommendations that align with your financial and estate planning needs and goals.