Estate Planning For Empty-Nesters

I have been writing about estate planning milestones for so many years, I almost forgot to memorialize my own entry to the empty nest club. 

There was no formal ceremony.  A quick hug and kiss followed by a slow walk to the SUV, and a few minutes later Apple Maps painted the long ride home. Dorm goods that had filled every space in the vehicle were gone, and thoughts turned to important matters such as locating decent food options along the various highways we would be traveling over the next four years.    

Empty nest does not mean empty head. There are planning tasks that need attention.

For the college students themselves, creating advance directives such as Powers of Attorney, Health Care Proxies, and HIPAA forms ensure that parents are legally able to handle their child’s affairs in an emergency. Make sure the state where the college is located accepts and honors New York forms. If not, make sure the correct state forms are executed along with any college proxy forms, giving parents the proper authorizations.

This also may be the time for parents to include their now-adult children in their estate planning documents. No longer requiring guardians, your children can be added as alternate executors, alternate trustees, and agents under a Power of Attorney or Health Care Proxy.

I understand that not all 18-, 19-, and 20-year-olds carry the same level of maturity. But the same can be said about some 50-, 51-, and 52-year-olds I know. Use your best judgment.   

Parents also come to the realization that they are no longer tied to a school district. Many times, empty nest leads to a new nest. Vacation homes are one way to forge a new path, instead of living under an old paradigm. In these cases, setting up a Trust to hold a primary residence and a vacation home is a good idea to avoid Probate in two states. 

A completed and up-to-date estate plan helps alleviate worry when it comes to another major empty nest ambition – travel. After 13-plus years of following the school schedule and traveling with millions of other parents on the same schedule, empty-nesters may get excited to finally venture abroad during off-peak times.

Considering the generational disparity in sheer numbers, Generation X empty-nesters may still be competing with the large numbers of retired Baby Boomers circumnavigating the globe. 

My folks always joked that they would rent out my room to a drifter when I left for college. They did no such thing. They filled my old room with boxes, hangers, clothes, and magazines instead. A drifter would have been better. We have different standards. 

My daughter’s room is not for rent and will not be used for storage… We’re thinking yoga studio or coffee bar. 

Alan D. Feller, Esq., is managing partner of The Feller Group, located at 572 Route 6, Suite 103, Mahopac. He can be reached at alandfeller@thefellergroup.com.