You can make your estate plan whenever you’d like, but many opt to start earlier. Why? Because unexpected health or financial crises might arise, necessitating someone to handle your affairs while you’re alive.
When Should You Start?
The right time to begin estate planning depends on your aims and the extent of your assets. If your estate includes businesses, multiple properties, substantial investments, or intricate family situations, crafting a thorough plan might take longer.
You should start with basic financial and medical powers of attorney as soon as you become a legal adult, but there’s no strict age for estate planning. As you gather assets, consider a more detailed plan. For those with young families, especially minor children, setting up a plan is crucial to ensure their well-being in case something happens to both parents.
What Are Your Concerns?
Estate planning gets you ready for unexpected medical situations like accidents or illnesses that might leave you unable to communicate. It’s best to set up advance healthcare directives like living wills and medical powers of attorney while you’re in good health. This ensures your preferences for care and treatment are clear.
Think about what matters most to you and your loved ones in terms of your life, finances, and belongings. It’s not just about money; it’s about your overall impact and personal beliefs. These should be incorporated into your estate plan.
- You can create a family mission statement to help guide future generations toward a goal that is meaningful to you, such as environmental responsibility or giving back to the community through faith or philanthropy.
- You can set conditions that reward specific behaviors such as building a productive career or business, maintaining health and wellness, or expanding financial literacy.
- You can contribute to a 529 plan or directly to education institutions to highlight the importance of a quality education for children, grandchildren, and great-grandchildren. If one beneficiary does not use the funds, it can often be passed to another.
- You can start a foundation or limited liability company to provide direction and purpose for family wealth. Encourage certain family members to fill roles within the organization that they may enjoy or that match their natural talents.
There are many ways to preserve your legacy and values while ensuring the success of future generations.
Different Stages of Life and Circumstances
Big life changes signal the need for an estate plan or a revision of the current one. Remember, it’s an ongoing process, not a one-time job. When these events occur, it’s time to reach out to your estate planning attorney:
- Marriage and divorce
- Birth and adoption
- Death of a spouse or child
- Purchase or sale of significant property and investments
- Starting a business
- Receiving an inheritance
At different stages of life, your estate plan may be simple, needing just a few key documents. If you’re younger, it might involve a will, along with medical and financial powers of attorney. Over time, your plan will grow more intricate, demanding careful thought. You might need additional documents, like advance directives for end-of-life care and a trust for safeguarding your assets and exploring advanced planning options.
Every choice you make in estate planning greatly affects your assets, your family, and how your wealth is distributed in the future. This is why it’s crucial to regularly check and update your estate plan, making sure it still matches your objectives, suits your present circumstances, and stays in line with legal and financial changes.
What Immediate Circumstances Are Urging You to Plan?
Your stage of life could determine the timing and urgency of your decisions. Certain events may also create an urgency to plan.
- If you are expecting a child, you may want to establish guardianship arrangements through your will or a separate document, designate a trustee to manage accounts and property on your child’s behalf, and create a plan to provide for their education and upbringing.
- If you are getting ready to close on a new vacation home, you may wish to consider how the property fits into your broader estate plan and legacy.
- If your grandparent or other family member has failing health and recently shared documents with you that name you as a beneficiary of their considerable estate, you can begin to align anticipated funds with your overall financial goals.
- If you are an entrepreneur or business owner ready for retirement, you can outline a succession plan, identify key individuals who will take over your business, and establish strategies to ensure the continuity and success of your business.
Whether you are prompted by impending life changes or taking a proactive approach, understanding your current situation is crucial for crafting a comprehensive estate plan that reflects your values and provides for your loved ones.
Is It Possible to Plan Too Far in Advance?
Finding a balance is key. Estate planning paperwork, like wills and trusts, should be straightforward to prevent misunderstandings and conflicts. Going too far ahead might result in lots of “ifs” and conditions that could muddle your intentions. As things get more complicated, there’s a higher chance of confusion among your beneficiaries and those carrying out your wishes.
Life is full of surprises, and your finances, family, and goals can shift quickly. Basic estate planning papers like wills and living trusts can be adjusted or canceled while you’re alive. Getting too detailed too early might lead to more changes and extra expenses down the line.
Estate Planning Is an Ongoing Process
There’s no strict deadline for making your estate plan, but it’s wise to begin early and update it regularly. Concentrate on what matters now, knowing that your plan can adjust to future shifts. This way, your plan will always mirror your values, support your loved ones, and safeguard your legacy.
An experienced estate planning attorney can guide you through the process of developing a plan that suits your unique circumstances and goals.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Family Wealth Planning Session. The Life & Legacy Planning Session will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session (aka Family Wealth Planning Session) to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a 15-minute introductory call today.