I am often asked, "When should I start Estate Planning?" I almost always jokingly respond "yesterday". However, this answer is rooted in truth. I can never guarantee when something will happen, so I always encourage everyone to be as prepared as possible by starting your estate planning as soon as possible. 
Understanding Estate Planning
First, estate planning is not just about wills and trusts, although they play a significant role and are often the core of any estate plan. Estate planning encompasses the broad management of your assets and how they will be allocated upon death or incapacity. It also includes directives like who will care for your minor children, medical care preferences, etc. Talk to an experienced estate planning lawyer near you to discuss the options available to you and your family.
The Myth of Time
None of us are masters of time. We do not know what may happen and how things may unfold. We are often coaxed into a lie that there is always time tomorrow to get our affairs in order. Unfortunately, this is not the case, and we aren't guaranteed any particular day or time for something to occur that an effective estate plan could have helped alleviate additional heartache for our loved ones. Additionally, there is a misconception that estate planning is reserved for the elderly or the wealthy. This could not be further from the truth. Practically speaking, nearly every adult can benefit from some level of estate planning.
The following are critical life events that nearly everyone will face that all warrant having an effective estate plan:
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Becoming an Adult: Once you turn 18, your parents no longer have the legal authority to make decisions on your behalf. A basic estate plan can help outline your choices. For example, we recommend that those leaving for college have, at a minimum, their health insurance cards, Social Security card, Passport, HIPAA Waiver, FERPA Waiver, Health Care Surrogate Designation, Living Will, and a Durable Power of Attorney.
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Marriage: New marital status brings shared financial responsibilities. Defining how assets are divided or accessed is crucial, as well as who will take care of you during disability or incapacity.
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Parenthood: Designating a guardian for your minor children in the unfortunate event of your untimely death is paramount and one of, if not the most important, decisions you can make as a parent and is a critical component of an effective estate plan. Our blog post discusses the importance of designating guardians in greater detail.
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Homeownership: A significant investment, homes, and other real estate need proper documentation for future allocation and how these significant assets should be handled during our life and upon our death.
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Business Owners: If you own a business, outlining its future course – succession, sale, or dissolution – is indispensable. Nearly all business owners would benefit from estate planning; in particular, utilizing a revocable living trust is often a sound estate planning strategy for business owners.
Benefits of Starting Estate Planning Early
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Peace of Mind: By having an effective estate plan in place, you are gifted the knowledge that your loved ones will be taken care of and won't be burdened with complex probate matters upon your death. Also, effective estate planning provides additional peace of mind as you will have a plan to deal with your potential incapacity. An estate plan avoids the long nights of wondering what will happen to your family upon death.
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Avoid Probate: A comprehensive estate plan that effectively utilizes a revocable living trust (or other type of trust) can help ensure that your assets bypass the lengthy and expensive probate process and remove this costly, time-consuming burden from your family.
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Tax Minimization: Effective estate planning can shield your heirs from hefty inheritance and other taxes.
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Proactive Planning: Starting early means you can amend and adjust your estate plan as life and family dynamics change, allowing you to be proactive rather than reactive in your planning. Estate Planning during a crisis is expensive and stressful and can cause disputes and contention between your loved ones. It is always better to estate plan from a non-emergency, peaceful, thoughtful state of mind. However, if you are facing an emergency or imminent change in life, contact a local estate planning lawyer immediately to discuss your estate planning options.
How to Get Started Estate Planning: Contact a Local Estate Planning Lawyer
We recommend contacting a local estate planning lawyer near you for a consultation. Before your meeting or consultation, it is generally beneficial to:
- Take Inventory: Document your assets, including bank accounts, property, investments, and personal valuables and document how all these assets are owned (i.e., jointly with your spouse, independently, etc.).
- Choose Beneficiaries: Review your financial accounts and life insurance policies, ensure you have designated beneficiaries and mark down who these beneficiaries are and what they will receive. Be as specific as possible.
- Designate Legal Guardians: Discuss with your loved ones and determine who you would want to take care of your minor children if you cannot do so. We always recommend having primary and backup guardians for your minor children. We discuss the benefits of this in our blog post.
- Consult Professionals: Consult the other professionals in your life to obtain your account, tax, and financial information. This may mean contacting your CPA, financial planner or insurance provider.
None of us can predict the future or know what may come our way. Estate Planning is for everyone, rich or poor, old or young. We all benefit from having an effective estate plan in place. We recommend that you reach out to a local estate planning lawyer near you to discuss what options and planning are available to you. The best time to start estate planning is now, whether at the beginning of your career, starting a family, or anywhere in between.
