Life often requires much planning. Some of this is enjoyable, such as planning a wedding, a vacation or event. However, others are serious and may be difficult to initiate, such creating an estate plan. While the thought of your death is often difficult to process, this mindset can help you determine what decisions you need to make and how best to protect your assets and wishes.
The estate planning process is likely something you have heard about and might have considered. There is a misconception that you should be older, be wealthy or own a lot of property to need an estate plan. The reality is that age, wealth or property ownership does not matter. Estate planning is for everyone, and it could be established in early adulthood.
When to create your estate plan
Many question when the right time is to create an estate plan. In most situations, the answer is now if not sooner. It is never too early to create an estate plan unless you are a minor. Nonetheless, there are certain life events that often trigger an individual or couple to create an estate plan or update their current one. This includes when a saving account is established, the purchase of a home or other real property, an inheritance of money or valuable assets or property, when you get married, divorced or are widowed or the birth of a child or grandchild.
Now that you have decided to move forward with the estate planning process, the next step is to understand how to create an estate plan. While there is no one size fits all when it comes to estate planning, there is something everyone should include in their estate plan, and that is a will.
Executing a will and other estate planning documents
In basic terms, a will is a relatively straightforward and simple document. The goal of this document is to memorialize your wishes regarding the distribution of your assets and property in writing. Additionally, if you have any minor children, it can include details regarding their care and guardianship.
Because a will may not be enough to cover all your bases, it is important to consider other estate planning documents such as trusts, power of attorney and health care directives. A legal professional can help you understand the best way to create an estate plan or update it.