Estate planning is sometimes associated with retirement or old age, but you do not have to wait until later in life to start thinking about your wishes. Adults of many ages can benefit from having documents in place that explain what should happen to their property and who should make certain decisions if they become unable to do so themselves.
The right time to begin depends on your circumstances, but major life changes often provide a good reason to create or review a plan. An estate planning lawyer can explain which documents may be appropriate for your situation and help you prepare them according to applicable state requirements.
Consider Estate Planning Once You Become an Adult
Turning 18 changes your legal status in important ways. Parents who previously made decisions for their children generally do not automatically maintain the same authority once those children become legal adults.
For young adults, estate planning may be less focused on distributing substantial assets and more focused on decision-making. Depending on the person’s needs and applicable law, documents may address who can handle certain financial or health care matters if the individual becomes unable to make those decisions.
Young adults may also begin accumulating bank accounts, vehicles, investments, digital assets, and other property. Having a basic plan can provide instructions for how those assets should be handled.
Marriage Is a Good Time to Review Your Plans
Getting married can significantly change your financial and legal circumstances. Couples may combine finances, purchase property together, name one another as beneficiaries, or take on new financial obligations.
Marriage is therefore a logical time to create an estate plan or review documents that already exist. You may want to update beneficiaries, reconsider who should receive certain property, or decide who should handle important responsibilities.
People entering second or later marriages may have additional considerations, particularly when either spouse has children from a previous relationship. Planning can help clarify intentions for a blended family.
Having Children Can Change Your Priorities
Becoming a parent is another major reason to consider estate planning. Parents often want to ensure that their children will be financially supported if something unexpected happens.
A will may also provide an opportunity to nominate a guardian for minor children, subject to applicable law and court approval. Without documented preferences, family members may have less guidance about what the parents wanted.
Parents may also consider how and when children should receive inherited assets. Depending on the circumstances, certain estate planning arrangements can provide instructions for managing property on behalf of younger beneficiaries.
Buying a Home May Increase the Need for Planning
A home is often one of the largest assets a person owns. Purchasing property can therefore be an appropriate time to consider how that asset fits into a broader estate plan.
Homeowners may want to think about who should ultimately receive the property, how outstanding mortgage obligations could affect the estate, and whether ownership arrangements reflect their intentions.
Property laws and estate procedures can vary by jurisdiction, so assumptions about what automatically happens to a home after an owner’s death may not always match the actual legal process.
Significant Financial Changes Can Be a Trigger
You do not need to reach a particular level of wealth before estate planning becomes relevant. However, substantial changes in your finances can make reviewing your plan especially worthwhile.
Starting a business, receiving an inheritance, purchasing investment property, accumulating retirement savings, or experiencing another significant financial change may affect how you want assets managed and distributed.
Estate planning can also involve coordinating documents with beneficiary designations on certain financial accounts. Because some assets may pass according to beneficiary forms rather than instructions in a will, reviewing the entire financial picture can be important.
Divorce May Require Important Updates
Divorce can substantially change someone’s estate planning goals. Documents created while married may contain provisions involving a former spouse or arrangements that no longer reflect the individual’s wishes.
After a divorce, it may be appropriate to review wills, trusts, powers of attorney, health care documents, property ownership, and beneficiary designations. The legal effect of divorce on existing documents can vary depending on state law and the type of document involved.
Rather than assuming that divorce automatically updates everything, reviewing the plan can help identify areas requiring changes.
Health Changes Can Make Planning More Urgent
A serious diagnosis, major surgery, or significant change in health can highlight the importance of having clear instructions in place. However, waiting for a health crisis can make planning more stressful.
Estate planning can address more than what happens after death. Certain documents can identify people authorized to make health care or financial decisions when someone cannot make those decisions independently.
Creating these documents while you are able to carefully consider your options can provide an opportunity to discuss your preferences with the people you intend to name.
Estate Planning Is Not a One-Time Task
Creating an estate plan does not mean you should place the documents somewhere safe and never look at them again. Your family, finances, property, and priorities can change considerably over time.
Marriage, divorce, births, deaths, relocation, retirement, business changes, and major financial events can all provide reasons to revisit an existing plan. Changes in applicable laws may also affect planning decisions.
Periodic reviews can help confirm that your documents still identify the people you want and reflect your current circumstances.
Start Before You Think You Need a Plan
There is rarely one perfect age to begin estate planning. Instead, the best time is often when you have reached adulthood and have decisions, relationships, property, or responsibilities that you would want handled in a particular way.
Waiting until retirement can leave years in which your preferences are not formally documented. Starting with a relatively simple plan and updating it as your life changes may be more practical.
An estate planning lawyer can help you understand the options available under the laws that apply to you and determine which documents fit your circumstances. Whether you recently became a parent, purchased a home, got married, experienced a financial change, or simply want to put your wishes in writing, planning before an emergency occurs gives you more time to make thoughtful decisions.
