When it comes to estate planning, it’s never too early.
The estate plan that best fits your needs will differ greatly from age 20 to age 80, so it is a good idea to start early.
Let’s address anything stopping you from starting.
The number one estate planning obstacle is getting started. Although the process may seem intimidating, you will have jumped the biggest hurdle in the beginning. Though we can’t take our estate with us beyond the grave, we can control what happens to it, and which loved ones will take care of it after us.
Have any of these crossed your mind when thinking about estate planning?
Fear of complexity. The sooner you start, the easier it will be. There is no “right” age. Estate planning is not “one size fits all”. Getting started can be as simple as making sure you leave instructions for someone who steps in to take care of things in the event of death or incapacity. A simple first step can be contributing to an IRA account. Statutory powers of attorney can ensure that the person you choose will be able to step in to pay your bills or assist with medical decisions if you are unable to. A simple will ensures that your chosen person will be able to take care of things if you pass away.
Is estate planning really necessary for me? An estate is not defined by wealth. Your estate encompasses any assets that are of value to you, and whether or not you have a plan, the state does. If you pass away without an estate plan, you run the risk that assets under your name without beneficiary designation will be distributed according to your states’ probate laws, in a public court process, that may take longer than you imagine. If you have children or a spouse, they may receive a fraction of what you intend. A will and trust can ensure that your assets are distributed to who you choose, in a private manner. If not for yourself, the estate plan is one of the most thoughtful and considerate things you can do for your loved ones.
Death, Divorce, or Incapacity can be heavy to think about. You cannot anticipate death, divorce, or incapacity, but you can choose who will step in for you if this happens, and you can leave instructions for how they make decisions. We can’t take our assets with us when leaving the physical world, but in a trust, we can dictate how the fruits of our labor will go on to benefit others, and who will be in charge of that. Without an estate plan, the court may appoint someone who would not be your choice to have legal authority to control your money and living situation. An estate plan is really about retaining control over your own choices. Someone you trust, rather than a court-appointed conservator, will be by your side. The overall result will be peace of mind.