When to get an estate plan

There is no ideal time to create an estate plan. Some say, at the age of 18 that you should start the process. Certainly, new parents should consider a plan for the care of the child(ren). As families grow and your financial life grows - your assets and needs may change.  An existing estate plan should be reviewed to make sure it is meeting your current needs.  

Your estate plan will allow you to choose who gets what. 

You’ll have the chance to name the guardian(s) of your child(ren) 

You can minimize the cost of probate and keep more for your family

You can name your power of attorney if you become incapacited

The most important piece of the estate plan is a will.  Most people do not have a will let alone an estate plan. Although, most people with assets or a family should execute a will.  A will will help distribute assets and can include instructions on how to care for minor children.  

Life changes are a great time to review if and when an estate plan could benefit your family. One of the biggest concerns my clients bring up is with their children. How will children be taken care of if one or both parents were to die? The estate plan gives an opportunity to name a guardian to take care of a child if something should happen to the parent(s). Who do you trust to raise your child(ren) as you would have? Also, it is important to consider how and who will manage any assets the children may inherit. This may or may not be the same person chosen as guardian. Other life changes include, buying a home, starting a business, or an inheritance. 

Part of the estate plan is the trust. A trust can be beneficial to handle assets such as retirement funds, real estate, or life insurance. The trust can be especially helpful to manage assets of minors or special needs adults to help properly invest and protect the assets. 

You shouldn’t think of an estate plan as needed at your passing or death. Becoming incapacitated is also a critical part of the estate plan. As with most of the estate plan, a durable power of attorney or health care directive is most effective if done before an occurrence. Who will handle your financial and medical decision should you be unable to? Chose a person you trust and should you become incapacitated they can immediately step in to handle your affairs as you would have. It is also important to have a backup person should your primary choice be unable to serve. 

You may or may not need an estate plan, depending on the size of your estate and other factors but the time is now to get started.  If you have not reviewed your estate plan in a while or if you have not started the process contact me. Click here to schedule a free 15 minute consultation. 

If you have further questions, contact me at tenicia@mouldenlaw.com.

The Moulden Law experience and consultation is an educational, fun, and enlightening experience.