When Should You Start Estate Planning?

Estate planning is a process to help guarantee that your assets are distributed according to your wishes and that your loved ones are taken care of after your passing. Knowing when to start estate planning can be tough, but it’s a task that should not be delayed. In this article, we’ll discuss the best times and life events that should motivate you to begin estate planning, and why early planning is beneficial.

When To Start Estate Planning

• Early Adulthood: Strong Foundation

Many people believe that estate planning is only necessary for the elderly or the wealthy. However, starting your estate planning in early adulthood can provide a solid base for future adjustments.

As soon as you have sizeable assets or any dependents, it’s wise to create a basic estate plan. This plan can include a will, power of attorney, and healthcare directives. Establishing these documents early helps make sure that your wishes are known and legally documented, protecting your interests and those of your loved ones.

• Major Life Events: Time for Updates

Substantial life events are good opportunities to review and update your estate plan. Marriage, the birth of a child, divorce, and the purchase of a home are all milestones that call for revisiting your estate planning documents. Each of these events can dramatically change your priorities and the distribution of your assets.

For example, the birth of a child should move you to designated guardians and update beneficiaries. Likewise, a divorce may require removing a former spouse from your will and updating your power of attorney.

• Health Concerns: Protecting Your Interests

Facing a serious health diagnosis is a critical time to start or update your estate plan. When health concerns arise, having an estate plan helps see to it that your medical and financial affairs are managed according to your preferences.

Healthcare directives, including a living will and medical power of attorney, are important parts of an estate plan that should be set up during such times. These documents specify your desires for healthcare situations and select someone to make decisions in your stead should you be unable to do so.

• Retirement: Securing Your Legacy

Retirement is a great time to focus on estate planning. As you begin this new phase of life, reviewing and possibly expanding your estate plan becomes imperative.

At this stage, you should think about more complex estate planning tools like trusts, which can provide tax benefits and bring for a smoother transfer of assets. Also, updating your plan to reflect your current financial status and retirement goals helps secure your legacy and gives you peace of mind.

• Regular Reviews: Staying Current

Estate planning is not a one-time event but an ongoing process. Regular reviews and updates are highly recommended to make sure your plan remains in keeping with your current wishes and life circumstances.

Experts recommend reviewing your estate plan every three to five years or after any major life event. Keeping your plan current helps prevent complications in estate administration and reduces the risk of estate litigation.

The Best Time is Now – Secure Your Future with Estate Planning

The best time to start estate planning is right now. Choi Law Firm can help.

Regardless of your age or financial situation, having an estate plan in place protects your interests and those of your loved ones. Early planning allows for thoughtful decision-making and adjustments over time, seeing to it that your wishes are respected.

Knowing when to start estate planning is the secret to protecting your assets and loved ones. For expert guidance on estate planning, including matters of estate litigation and estate administration, get professional legal assistance from Choi Law. 

Call us at 201-613-5557 in Fort Lee, 718-673-2752 in Flushing, or use our convenient online contact form to reach out.