People often think that they do not need to make an estate plan until they are older. They may have a specific age in mind, such as waiting until they retire at 65. Many people who admit to procrastinating on estate planning indicate that they are just waiting to make that plan at a later date.
However, this type of procrastination can be dangerous. People pass away unexpectedly all the time, often due to accidents or sudden illnesses. So it is important to make an estate plan, even if you feel that you are too young, just to ensure that that framework is in place to give your family the guidance that they need if you should pass away in the near future.
It is not all about assets
People often wait until they are older because they know they are going to have more assets, so it is important to remember that these are not the only things your estate plan addresses.
For instance, you can use your estate plan to make medical decisions in advance. You can also set up a power of attorney and give your selected agent the ability to make these decisions for you. Even if you do not have any assets at all, medical planning can be very helpful.
You also have to think about your children. A young parent may assume they still have decades left before they pass away, but they can use an estate plan to choose a guardian for their child. This can give them peace of mind and ensure that, if they do pass away unexpectedly, someone is ready to take care of the child on their behalf.
Do you want to create an estate plan this year?
If you do not yet have an estate plan, you may be thinking about putting one in place this year. Make sure you know exactly what legal steps you will need to take.