Everyone has a different vision for retirement — and a different budget. For most of those who have the luxury of retiring at all, money is a chief concern and every expense must be deliberate, calculated and hopefully worth the cost.
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For some, travel might be money well spent. For others, it might be hobbies, wellness, or spoiling the grandkids.
Although each retiree has different goals and priorities, there is one expense that’s nearly universally accepted as being worth every penny for those who make the purchase.
The Inevitable is Universal — and Planning for It Is Worth the Cost
The uncomfortable truth is that, eventually, retirement — and life — will end for everyone. As unpleasant as that reality might be, the value gained from the cost of planning for it is the one expense that is worth the money to nearly everyone on any retirement budget.
“For many of the retirees we work with, estate planning is worth every penny because it delivers peace of mind, not just for them, but for their loved ones, too,” said Renee Fry, CEO of personalized estate planning platform Gentreo.
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The 5 Components of Estate Planning
Contrary to popular mythology, estate planning is not just for the rich. It’s an essential task for all adults across all income levels, regardless of their assets or whether they have heirs.
Charles Schwab outlines the five key elements of estate planning.
- Durable power of attorney: DPOA appoints a person of your choice to manage your affairs, including handling your investments, filing your taxes, collecting Social Security and other benefits, making gifts and paying ongoing expenses.
- Instructions to family: A statement revealing your wishes, chronicling your liabilities and assets, revealing passwords to accounts and digital assets, and sometimes including a personal final message.
- Advance directives: Covers healthcare instructions such as do-not-resuscitate orders.
- Will: A basic will names an executor to manage probate and a guardian to care for children while establishing wishes for the distribution of your assets.
- Trust: Like a will, a trust is a set of legal instructions, but unlike wills, trusts are not part of the public record and generally bypass probate. There are many kinds, but trusts generally offer greater control, flexibility and privacy.
Planning Is Cheaper Than Not Planning
According to LegalZoom, a basic last will and testament costs an average of $300 to $1,000 in 2025. Trusts, depending on the type and complexity, can cost between $2,000 and $5,000.
While most retirees wouldn’t be eager to part with that kind of cash, the cost of doing nothing can be much higher.
“If estate planning isn’t in place, government rules dictate who gets what, and most retirees want to make their own decisions and not have the government decide who gets what,” said Fry.
Probate can be a long, expensive process even with a will. Without one, the cost and timeline only grow. Trusts can spare your heirs from unnecessary tax bills and thorough instructions can prevent infighting and lawsuits among beneficiaries — and with your plans in place, you can breathe easy in your golden years.
“Knowing that the retirees’ wishes, both health and financial assets like their home, savings and critical documents, are organized and legally protected means they can focus on enjoying retirement,” said Fry.
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This article originally appeared on GOBankingRates.com: The One Expense Retirees Say Is Worth Every Penny
