It is human nature to procrastinate or delay unpleasant activities. Most people view estate planning as unpleasant because it requires that they have difficult conversations and spend time thinking about medical emergencies and death.
Of course, estate planning is a beneficial and positive process because it helps people protect themselves and their loved ones. People can easily convince themselves that they have plenty of time to worry about estate planning in the future. If adults understand when they should establish an estate plan, they may find it easier to overcome the tendency to procrastinate.
What is the best time to begin estate planning?
After becoming a legal adult
Most 18-year-olds scoff at the idea that they need an estate plan. After all, they probably haven’t started a family yet. They may not have any high-value property. In fact, they may still live at home with their parents.
What they fail to understand is that their parents cannot intervene in their medical care should an emergency occur. In fact, their parents may not be able to access information about their medical condition or treatment.
Young adults often need to establish advance directives explaining their medical preferences and powers of attorney granting someone trustworthy the necessary authority to handle medical matters on their behalf. People can also establish financial powers of attorney that empower a trusted agent to pay their rent, credit card bills and student loan obligations.
After achieving certain personal goals
Those who have not yet established an estate plan may find that starting a family or acquiring valuable property is the motivation they need to take action. Those with children generally need a will to name a guardian to care for their children in the event of an emergency.
Those with real property, businesses or other valuable personal resources need a will, trust or other estate planning documents to ensure that the right people inherit those assets when they die. Finally, those preparing for retirement likely need estate plans if they have not already established them.
In fact, they may need to significantly modify and expand existing plans to prepare for retirement. They may want to engage in Medicaid planning by making certain financial moves before they need benefits. They may also want to plan ahead of time to avoid a scenario in which they end up subject to guardianship because their health declines as they age.
The best time to establish an estate plan is as soon as possible. Taking the time to establish and update estate plans can protect people, their property and their loved ones from difficult situations. An estate plan provides peace of mind and protection in an emergency. It also gives an individual the ability to leave an intentionally meaningful legacy after their death.