What older people should know about divorce and retirement
People in South Carolina and throughout the country who get divorced after the age of 50 may face unique estate planning challenges. TD Wealth conducted a survey of 112 financial professionals to determine what those challenges may be. Of those who responded, 39% said that getting divorced later in life can increase the cost of retirement. Those respondents also said that ending a marriage could make it harder to adequately fund a retirement.
Individuals are encouraged to review beneficiary designations on retirement and other financial documents. Of financial planners surveyed, 42% said that advised their clients to consider putting their assets into trusts. Trusts may be an easier and less expensive way for divorced individuals to transfer assets to their children.
Furthermore, a trust may help to reduce the amount of capital gains and other taxes a person may pay on an asset in the future. Trusts can also be used to guard against creditor claims. According to financial planners, it is important for individuals to talk about their estate planning needs and goals with family members. It is also a good idea to build safeguards into estate plans to reduce the likelihood of family disputes taking place.
The use of a trust may make it easier for individuals to protect their assets This is because a trust is typically harder to challenge than a will. It might also allow a person to have greater control over how future generations use money, a home or other items held outside of an estate. An estate planning attorney can provide more information on these matters.