I am 68 years old, divorced and have two children. I have $750,000 and I rent my house. Do I need a trust?

Dear Quentin,

I’m 68 years old, I don’t own any real estate or a car, I’m divorced and I have two adult children. I’m on social security and have about $750,000 invested. I continue to reinvest the dividends and interest so that my investments continue to grow. I feel like I’m missing something. In addition to a will and health care directive, I’m curious if I need to add a revocable trust?

Pensioner

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Dear Pensioner,

Get ready. I’m going to answer a lot of questions you didn’t ask.

A revocable trust is necessary if you want to control how your assets are used after you die. If your estate is simple and you are happy to have your two adult children as your beneficiaries, you can – if you choose – split it down the middle 50/50.

Adding your children as beneficiaries to your bank accounts, brokerage accounts and any life insurance policies you may have will mean those assets will not pass probate – the public accounting of your assets and liabilities.

Yes, there is also a lot you can do for yourself. An advanced health care directive tells your doctors what steps you want them to take if or when you can’t make these decisions for yourself. You can list your children as health proxies to carry out these decisions.

Having a long-term care policy would also help ease the potential financial burden ahead. Nursing home care costs can vary significantly depending on the type of care, where you live, and the type of facility (up to $125,000 a year, believe it or not).

LTC policies cost more the older you get. A man who waits until age 65 to purchase such a policy pays about $3,135 a year, according to AARP. “A person purchasing a long-term care policy at age 65 will pay $3,135 in annual premiums or $47,025 by age 80.

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“A 65-year-old couple who wait until age 75 to get coverage would see their premium nearly double,” it said, citing the American Long-Term Care Insurance Association. “Seeking coverage at age 70 or older also reduces your chances of being covered by nearly 50 percent.”

An elder law attorney could cost between $100 and $600 per hour, depending on the type of services you may need. An attorney and financial advisor will help you take stock of your assets, income, expenses, and estimated long-term care costs and help you plan accordingly.

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Other answers to questions you didn’t ask: Consider naming one or both sons as financial power of attorney (assuming they get along) in the event you become incapacitated. Update your beneficiaries and write and/or review your will to ensure it is up to date.

You have $750,000 invested in the stock market. Do you have other less risky investments? At 68, using the “100 minus your age” rule, you shouldn’t have more than 32% of your assets in the stock market; if there is a major drop, you will have less time to recover.

Tax diversification is another priority at age 60. “If you don’t currently have money saved in a Roth IRA, you may want to consider Roth contributions, if you qualify, or a Roth conversion in your lower income years,” according to T. Rowe Price.

“Roth IRA and Roth 401(k) assets are not subject to required minimum distributions – the minimum withdrawals required by the IRS from retirement accounts once you turn 73. So you can let the money continue to grow tax-free if I don’t need it.”

It’s all for play – with or without a revocable trust.

More columns from Quentin Fottrell:

“He never paid rent or utilities:” Do I have the legal and moral authority to charge my brother rent to live in our family home?

“I don’t want to be unfair”: My mother gave me $150,000 to buy a house. A brother wants a 15% property. what now

“I have no regrets”: I am 84 years old and estranged from my two grown sons. My wife of 48 years will receive my seven figure estate. Is he selfish?

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