5 Signs It’s Time To Start Your Estate Planning

Estate Planning

If you’re concerned about what’ll happen to all of your assets and possessions when you die, it’s time to consider creating an estate plan. You’ll have peace of mind knowing that your desires will be the priority and that your family’s needs will be in order after your death if you have an estate plan in place.

Unfortunately, most individuals miss essential aspects of life and wait until it’s too late to take action. Most people feel that estate planning is only necessary for the elderly, the sick, or those who belong to society’s top crust.

In essence, everyone should think about estate planning at some time in their lives to ensure that they’re protected. If you delay planning one, you’re more likely to find yourself in a circumstance when you’ll need it most.

If you still have uncertainties about whether to start arranging your estate plan, here are several signs that you should do as soon as possible:

1. Major Life Events

Several key life events may occur depending on the stage of life you’re presently in. Some of the common changes usually include the following:

  • Having children or grandchildren  
  • Experiencing a major medical or health condition  
  • Retirement
  • You or one of your beneficiaries will have an upcoming marriage or going through a divorce
  • Significant people may enter or leave your life

When you go through any significant changes, it has a considerable impact on how you’ll work out your estate plan. If any of these life events occur, don’t hesitate to reassess your approach to ensure that everything goes according to plan.

2. Buying A House 

Although acquiring a house is one of the necessities in life you’ll encounter, it’s a significant investment, and having one makes it ideal to start creating your estate plan.  

Aside from high-value business purchases, a home may be a significant asset. With this in mind, you should consider creating an estate plan to ensure that your desires are the priority in the event of your untimely death.

You can define whether a property will transfer to a specific family member or if your successors will be free to sell the property and share the money evenly, depending on your wishes. If you don’t express your preferences, it may be difficult for your family to navigate the legal formalities regarding your property. Unfortunately, some situations end up in turmoil as family members compete for control or privileges.

3. Holding Substantial Assets  

If you’re lucky enough to amass a considerable amount of wealth, you’re likely to run into problems if you disregard the need for an estate plan.

When all of your property assets have a high value that requires estate taxes, creating a will and a trust ahead of time will be helpful. Investing in or selling a significant asset such as real estate or a company might have an impact on your estate plan. Consider formulating a plan if you haven’t already done so. Similarly, if your partner or spouse receives a big inheritance, you should include it in your will as well.

Furthermore, proper documentation reflecting your exact intentions is critical. Doing so will ensure the smooth transfer of your assets, especially when there’s a business involved. 

4. Working In A Career That Carries A High Level Of Risk 

Certain occupations might put one’s life in jeopardy, resulting in injury or even death. Construction, security, law enforcement, transportation, health care, and even agriculture are examples of industries with a high level of risk. 

Estate Planning

You might be prone to injuries in the workplace or while on the field. When you end up with debilitating injuries or even untimely death, it can put your family in disarray if you fail to create an estate plan beforehand.

Aside from determining who’ll inherit your possessions, an estate plan also contains a living will with a medical directive stating your preferences and power of attorney paperwork granting persons authority to make medical or financial decisions on your behalf. 

5. Close Encounter With Death 

Consider it a hint that you need to prioritize an estate plan as soon as possible if you have loved ones who had a close call with death or who have passed away due to an injury or a health issue.

Working with an estate planning lawyer to get everything in order might be a good option if you’re having trouble deciding on the essential aspects of your estate plan. It’s doubtful that your desires will be the priority if you disregard the need for an estate plan.

Conclusion

People create estate plans for various reasons, including having a severe health condition, preparing for retirement, getting married or going through a divorce, and losing a family member. In general, the sooner you begin the estate planning process, the higher your chances of protecting yourself and your family in the event of your death.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.