A misconception about estate planning is that you should be a certain age or financial state before you should start doing it. Nevertheless, estate planning is generally crucial regardless of time, as it helps you ensure that your assets are correctly maintained and go to your intended beneficiaries.
The best time to start
Some people think that the right time to start estate planning is when you are old or already have considerable assets, but this might not necessarily be true. It is likely best to start as soon as possible because, to put it bluntly, nobody knows when they will die. Having your will ready might help give your loved ones peace of mind, especially as they sort out any assets you leave behind.
Even young people should consider where the properties they earn or accumulate should go. These assets include:
- Bank and other financial accounts
- Personal belongings
- Insurance policies
- Digital assets
Without an estate plan to identify who would own these assets, your loved ones might end up in court over who has rights to your belongings.
How to start your estate plan
When starting your estate plan, it helps to have an inventory of all the assets you own. You will also need to identify your beneficiaries and an executor you can trust.
Moreover, you might need to consider laws, current tax rates, and other technical details when drafting your plan. Lawyers, accountants, and other professionals can help you sort these out. If you are worried about how changes in your life over the years may affect your will, always remember that it is possible to update your estate plan as needed.