An estate plan, as you know, is the legal documentation and itemization of your assets and last wishes. Included in your estate plan are several key documents and decisions you’ll make while alive to help benefit your family and loved ones.
However, this may be your first estate plan and you want to ensure you’re making it at the right time. There are a few reasons you may want to start estate planning, and here are three of them:
1. When you’re still young
Many people don’t realize that they can and often should make an estate plan while they’re young. One of the many and possibly most important aspects of an estate plan is the power of attorney.
A power of attorney represents a testator when they’ve become incapacitated. As a result of an accident, medical condition or mental illness, a power of attorney may step in to decide all medical and financial decisions on our behalf.
2. After marriage or divorce
Many estate plans include spouses and, after marriage, you may want to include yours. You may want them to inherit all of your assets to live comfortably after you pass away. Alternatively, if you’ve recently left a marriage, then it may be time to put your estate in order. You may still want to include your ex-spouse, but most likely, you’ll plan your estate around friends, family and your children.
3. When you have children
Speaking of children, having a child is often the perfect reason to plan your estate. There’s no telling what will happen between now and when they grow older and you may need to designate a guardian for them. Otherwise, you can set up a trust for your children that may help finance their businesses or education.
It should be noted that there’s no better time to make an estate plan than right now. There doesn’t need to be a reason to start estate planning, especially if you’re already married, divorced or have children.