Many people put off estate planning because they don’t think they don’t need to worry about it yet… and then they keep putting it off. The simple truth is that no one knows what the future will hold, so it’s prudent to create an estate plan early and update it often. The best age for estate planning isn’t 65, or 40 or 30. It’s your current age.
If you’re 18 or older, you’re old enough for an estate plan. In particular, estate planning is crucial at certain milestones.
Milestone #1: You Become a Legal Adult
The age of majority is 18 in the U.S. This means you can vote, sign contracts, serve on a jury, and take on many other adult responsibilities. It also means your parents no longer have control over your finances and medical decisions.
While young adults may be happy with their newfound freedom, they also need to consider what might happen during a medical emergency. If you’re in a car accident, come down with meningitis, or experience another catastrophic injury or illness that renders you unable to communicate your wishes, who will make decisions regarding your care, and will that person know your preferences?
Incapacity planning is a critical part of estate planning. Adults of all ages can establish an advance directive and name a power of attorney so their wishes will be known and carried out if they become incapacitated.
Milestone #2: You Get a Pet
Pets depend on their owners for care. When those owners become incapacitated or pass away, the pets may end up in a shelter.
As a pet owner, you may think of your pets as family, and you may be heartbroken at the thought of them ending up in a shelter. Estate planning is the solution. Some people create trusts for their pets, allowing them to providing funding and instructions for the pets’ care. There are other options, as well, such as the Oregon Humane Society’s Friends Forever Program.
Milestone #3: You Acquire Assets
Over the years, you’ll likely acquire assets: family heirlooms, collections, cars, real estate and other items of sentimental and financial value. An estate plan lets you decide what happens to these items, and you don’t need substantial wealth for this to matter.
For example, you may have a ring that you inherited from an aunt, and that you want to go to your niece. Or you may be an artist, and you want your art and supplies to go to a good friend who has always supported you. Without an estate plan, these wishes may not be known or honored. Items that are meaningful to you could end up where they are not appreciated, and family members may fight over items. An estate plan is a simple way to provide clarity.
Milestone #4: You Start a Family
Families can take many forms, but regardless of the details, starting a family is a good reason to have an estate plan.
If you have children, you can name a guardian in your will and establish a trust to provide care. Estate planning is also important if you provide care to an adult with special needs, whether this is a grown child, a family member or a friend.
For unmarried couples and blended families, estate planning can be especially complicated. Without a solid estate plan that includes a will, disputes become more likely, and they can become bitter. Creating an estate plan is a straightforward way to make your wishes known.
Milestone #5: You Start Thinking About Leaving a Legacy
There’s no set age for this. Although older adults may be more inclined to think about the legacy they’ll leave behind, you can start thinking about your legacy at any age.
Perhaps you want to leave funds to a charity that’s dear to your heart, or maybe you have a item of historical or artistic importance that you want to leave to a museum. Regardless of your specific desires, estate planning is how you can take control of your legacy.
Are You Putting Off Estate Planning?
Ideally, everyone would create an estate plan once they turn 18, and they would update the plan regularly to reflect changes in their life. If you haven’t created your estate plan yet, there’s no reason to wait. Skinner Law can help you develop a plan that ensures your wishes are known. Contact Skinner Law.