Many financial planners encourage you to begin an estate plan as soon as you reach legal age and revise it every three to five years. As soon as you turn 18, you are now accountable for your money, healthcare (in certain areas), and power of attorney. You need to ensure that everything is in order. However, for most young individuals, estate planning is the last thing on their minds.
When is the Right Time to Start Thinking About an Estate Plan?
However, you should always prioritize certain life events in your estate plan. Factor in the life events as indicators to begin (or edit) your current estate plan, regardless of your age:
Savings Account – Once you’ve established a savings account, the next logical thing to do is to specify where the funds will go in the case of your incidental death. It ensures that the account may be handed over to a loved one.
- Ownership of a Home or Other Property -With the acquisition of a house or other type of property, you should begin estate planning to avoid lengthy processes in probate court.
- New Businesses- Entrepreneurs should seriously consider protecting their new business by putting the ownership in a Limited Liability Company form. There are other forms of company ownership and ancillary considerations to ensure the best protection and estate planning to provide for your family.
- Travel – You should update your estate plan before major vacations. This is especially important if you travel for extended periods or leave the nation regularly.
- The First Child and Subsequent Children – The birth of a child is one of the most apparent estate planning catalysts. In an emergency, you should consider guardianship and financial stability.
- Marriage and Remarriage – Bringing assets together, no matter how many, is a critical moment to begin estate planning. Take the time to plan what will happen if one or both spouses dies.
- Inheritance of Money or Other Assets – During a challenging moment, an inheritance might come as a surprise and give people extra assets to care for. When possible, update your estate plan to reflect any new money or assets you inherit.
Your attorney must know both Missouri and national law to start your estate planning off the right way. It’s best to get informed, so you know what your next action is, so reach out to Paths Law Firm.