Estate Planning in Retirement: Key Updates That Matter Now

The Real Purpose of Estate Planning in Retirement

Estate planning in retirement isn’t just about passing on your assets—it’s about protecting the people you love, making your wishes clear, and minimizing stress for your family.

If you’re in or near retirement, you likely already have the big financial pieces in place: a diversified portfolio, a withdrawal strategy, maybe even a healthcare plan. But one area that’s often overlooked—until it’s too late—is your estate plan.

Without regular updates, even the most carefully designed estate plan can fall short. Laws change. Assets shift. Families evolve.

And in 2025, with new retirement trends, increasing lifespans, and shifting tax laws, estate planning in retirement has never been more important.

Let’s walk through the core updates every retiree should consider—so your legacy reflects your current life, not the way things looked 15 years ago.

Why Estate Planning in Retirement Needs a Second Look

Estate planning in retirement goes far beyond having a will. A complete plan includes:

A legally valid will
One or more types of trusts (if needed)
Healthcare and financial powers of attorney
Updated beneficiary designations
A plan to minimize estate taxes and avoid probate

And while you may have checked these off at one point, retirement is a major transition—and it changes everything.

Retirement often brings the consolidation of accounts, lifestyle shifts, and new considerations for long-term care, charitable giving, and multigenerational wealth transfer.

And yet, most retirees forget to review their documents after leaving the workforce.

That’s why we recommend revisiting your estate plan at least every 3–5 years—or after any major life change.

Updating Beneficiary Designations: The Overlooked Essential

One of the simplest—and most critical—steps in estate planning in retirement is updating beneficiary designations.

These designations override what’s written in your will. That means if your will says one thing but your retirement account or insurance policy lists someone else, the beneficiary form wins.

We’ve seen situations where a retiree’s ex-spouse received a large IRA simply because no one updated the form. That’s not just a clerical error—it’s a costly oversight.

Common accounts that require current beneficiary designations include:

IRAs and 401(k)s
Life insurance policies
Transfer-on-death (TOD) brokerage accounts
Payable-on-death (POD) bank accounts

Make sure each of these reflects your current wishes. And don’t forget to name contingent beneficiaries—just in case your primary beneficiary predeceases you.

Reviewing and Updating Your Will

Your will outlines who gets what—and who’s in charge. If it’s been a while since you’ve read it, now is the time.

During retirement, your assets and intentions often evolve. Maybe you've downsized your home, sold a business, or want to include charitable bequests.

Questions to consider:

Do the listed heirs still reflect your current relationships?
Are the named executors still living—and willing to serve?
Have any major assets changed or been sold since the last update?

Remember, your will only governs assets that don’t pass by title, trust, or beneficiary form. That’s why estate planning in retirement is a broader conversation than just updating one document.

Do You Need a Trust?

Not every retiree needs a trust—but for many high-net-worth individuals, a trust can provide control, flexibility, and tax efficiency.

Here are a few reasons you might consider adding or updating a trust:

You want to keep your estate private and avoid probate
You have children or beneficiaries who may need financial guidance
You want to control how and when heirs receive their inheritance
You’re planning for long-term care and want to protect certain assets

A revocable living trust can serve as a foundational tool in estate planning in retirement, especially when paired with your will.

Other options—like charitable remainder trusts, irrevocable life insurance trusts, or special needs trusts—can be customized to support specific goals.

An experienced advisor can walk you through what makes sense for your situation.

Power of Attorney: Who Will Make Decisions if You Can’t?

One of the most overlooked elements of estate planning in retirement is the need for clear, current powers of attorney (POA).

There are two main types:

Healthcare POA – Allows someone you trust to make medical decisions if you’re unable to do so.
Financial POA – Grants someone the authority to manage your finances, pay bills, or handle investments on your behalf.

These documents are essential—even if you’re married. Many banks and medical providers won’t accept “I’m the spouse” as legal authority.

Make sure your POAs are up to date, legally valid in your current state of residence, and stored in an accessible place your loved ones can find.

Estate Planning in Retirement and Taxes: What’s at Stake?

The current federal estate tax exemption is historically high—but it’s set to be cut in half in 2026 unless new legislation is passed.

That makes 2025 a critical year for forward-looking retirees to reevaluate their estate plans.

If your estate is close to or above the exemption threshold (currently around $13.6 million per individual in 2025), you may want to consider:

Gifting strategies to reduce your taxable estate
Spousal lifetime access trusts (SLATs)
Grantor retained annuity trusts (GRATs)
Roth conversions to reduce future taxable income for heirs

Even if you’re not worried about federal estate taxes, state-level estate or inheritance taxes may apply depending on where you live.

Planning ahead helps reduce potential tax burdens and ensures your heirs receive more of what you’ve worked hard to build.

Real-Life Example: Why Timing Matters

A couple in their late 60s came to us after retiring and moving to a new state. Their wills were drafted when their kids were in grade school. Now those kids are married with children of their own.

They hadn’t updated their beneficiary designations, and their powers of attorney were outdated and no longer valid under the new state’s laws.

We worked with them to review their entire estate plan, update all legal documents, align their investments with their legacy goals, and structure a trust to support future generations while minimizing taxes.

Now, they feel confident their wishes will be honored—and their family won’t be left guessing.

Working With a Fiduciary Makes the Process Simpler

Estate planning in retirement isn’t something you need to figure out alone.

At Haywood Wealth, we partner with estate planning attorneys to help our clients align their wealth with their wishes—down to the smallest detail.

We help retirees:

Understand the tax impact of their estate plan
Coordinate investment accounts with their legal documents
Plan for healthcare, legacy, and charitable giving
Review their documents and keep everything current

It’s not just about paperwork—it’s about peace of mind.

Ready to Secure Your Legacy?

If you’ve been meaning to review your estate plan—or you’re not sure where to start—let’s talk.

Schedule your Retirement Pathfinder Analysis today. It’s a one-on-one session where we’ll walk through your goals, review your current estate setup, and help you build a plan that reflects the future you want.

👉 Schedule Your Retirement Pathfinder Analysis

Your legacy matters. Let’s make sure it’s protected, personalized, and built to last.