At What Age Should You Create an Estate Plan?
Whether your live in Minnesota or elsewhere, every person who has attained adulthood - yes, 18 years of age - should have a plan an estate plan in place. At first, this is going to be a very basic plan. It will have little to do with asset or legacy planning and much to do with incapacity planning. Unfortunately, life’s curveballs don’t discriminate, and even a very young adult may be faced with the need to have someone step in and speak on their behalf, both for medical reasons as well as financial reasons. A basic incapacity plan will address this need for the youngest adults.
Throughout life, many other milestones will influence the need to re-address your estate plan. There are some considerations:
Adulthood: When you turn 18 years old, it is important to designate individuals to speak on your behalf both for medical reasons as well as financial reasons if you are unable to do so for yourself.
Marriage: When you get married, it's a good time to create or update your estate plan to ensure that your spouse is provided for and to address issues related to joint assets.
Parenthood: The birth or adoption of a child is another crucial time to establish an estate plan. This includes naming a guardian for your minor children and making provisions for their financial well-being.
Acquiring Assets: As you accumulate assets, such as a home, savings, investments, or business interests, it becomes important to plan for their distribution in the event of your incapacity or death.
Divorce or Separation: If you go through a divorce or separation, it's essential to update your estate plan to reflect changes in your family structure and beneficiaries.
Health Issues: If you are diagnosed with a serious illness or face health challenges, it's wise to ensure that your healthcare wishes and financial matters are addressed through advance directives and powers of attorney.
Retirement: As you approach retirement, your estate planning goals may shift, and you may want to review and update your plan to reflect your current financial situation and wishes for the distribution of assets.
Inheritance or Windfall: If you receive a significant inheritance or windfall, it may prompt the need to reassess and update your estate plan to incorporate new assets and plan for their distribution.
Changes in Laws: Periodically review your estate plan when there are changes in relevant laws or regulations, as this may impact the effectiveness of your plan.
Remember that estate planning is a dynamic process, and it's important to review and update your plan periodically, especially when major life events occur. It's advisable to consult with an estate planning attorney to ensure that your plan is tailored to your specific needs and remains current with your circumstances.