Many people think of estate planning as something that older adults do. Even those who recognize that reaching retirement age isn’t necessary may assume they need to have some substantial personal assets or possibly even dependent children to justify estate planning earlier in life.
The unfortunate reality is that many people put off estate planning for so long that they may experience an emergency or die without any documents in place. It’s easy to procrastinate about an activity that may seem unpleasant, such as contemplating the inevitability of death and the impact it could have on others.
People who understand the ideal age to establish an initial estate plan can potentially overcome the desire to procrastinate. In doing so, they can protect themselves from unexpected emergencies, while also protecting their loved ones and the legacy they might eventually hope to leave.
When is the right age to create an estate plan?
Waiting until life feels settled and stable to establish an estate plan is a common mistake. Parents with one child but intending to have three might tell themselves they’ll draft documents after they’re done having children. Those living in an apartment may say that buying a home is the life goal that makes estate planning necessary.
Those experiences may require the creation of an estate plan or the modification of existing documents. However, the initial estate planning process should ideally occur well before people are old enough to have finished growing their families or purchased a home. As soon as a young adult turns 18, they are somewhat legally vulnerable. Their parents can no longer access their assets or their medical records if an emergency occurs.
They may need to create an advance directive explaining their medical wishes and powers of attorney designating someone they trust to act as their agent in an emergency scenario. They can also draft a will if they have any assets that they want to designate to a specific person. Otherwise, intestate succession laws dictate that their immediate family members inherit all of their property.
People who estate plan early can continue adding new documents and updating existing ones to reflect changes in their families and their personal holdings. As a general rule, the sooner that people begin estate planning, the better.
Reviewing family and personal circumstances with a skilled legal team can help people identify their current estate planning needs. Those who create documents and then update them regularly can protect themselves and their loved ones from a broad range of challenging situations.