What documents do I need before I retire?

Beneficiary designations come first because they are the most often out of date. Assets with a beneficiary designation pass under that designation, not under your will, and they skip probate. FINRA notes that a former spouse still listed as beneficiary will in many cases receive the money. Check every 401(k), IRA, pension, annuity and life insurance policy.

In a 401(k) or similar plan, your spouse is generally the beneficiary by default. Naming someone else requires your spouse's written consent, witnessed by a notary or plan representative. If you married or divorced after you enrolled, tell the plan.

A durable financial power of attorney names an agent to handle your money and property if you cannot. The agent is a fiduciary: they must act in your interest, keep your money separate from theirs, and keep records. An advance directive covers health care. It usually has two parts: a living will, which says which treatments you want if you are dying or permanently unconscious, and a health care power of attorney, which names a proxy to make medical decisions for you.

A will covers what is left: property with no beneficiary form or joint owner, plus who settles your estate. Keep a list of accounts, logins and where each document is, and tell the people you named that they are named.

These are state-law documents, so forms and signing rules differ by state. The real test is not whether the documents exist but whether the names on them still match the life you have now.