Estate planning can be a complex process. People may spend weeks evaluating their circumstances and deciding how to address their property. Testators creating estate plans can choose people to receive their property. They can designate a personal representative to administer their estate.
They can fund trusts to protect their assets as they age or make it easier to qualify for Medicaid for long-term care. They can even establish plans that protect them in the event of an incapacitating medical emergency. People generally acquire the legal right to estate plan when they become legal adults. Despite having the option of creating an estate plan, many people procrastinate.
In fact, researchers recently released data indicating that fewer than one in three adults currently has a will on record. Many people wait too long and then never have an opportunity to plan. When is the right time to establish an estate plan?
Early planning is optimal
People never know when they might have a medical emergency. Quite a few people die unexpectedly due to car crashes or other unpredictable events far before reaching their estimated life expectancy. Therefore, the best time to start estate planning is as soon as an individual ages out of protection from their parents.
18-year-olds starting their careers or college may benefit from drafting powers of attorney and advance directives. Otherwise, their parents may not be able to pay their bills or make medical decisions about their care in an emergency situation. New parents or spouses may need to plan to protect their dependents if anything happens to them.
People often wait to establish estate plans until they reach certain critical milestones. They may believe that estate planning is only necessary once they own a house, have a spouse or add a child to the family. Dependent family members absolutely require the protection that comes from an estate plan, but the testator also likely needs the peace of mind and protection that come from having documents in place.
Creating an estate plan early and then updating it routinely as personal circumstances evolve is often the best approach to estate planning. New adults, new parents and even those on the cusp of retirement may want to sit down with a skilled legal team to discuss their estate planning priorities and the best ways to achieve them accordingly.